Summary:

As of early January 2023, multiple economic indicators continued pointing to the challenges that Tunisia is navigating:

On 28 December 2022, foreign exchange reserves rose above a 100-day supply. While a positive development, this rise in supplies only comes after $200 million in financing and $100 million in aid provided by the Algerian government.

In December 2022, Tunisia’s inflation rate averaged 10.1%, a number that many Tunisia watchers have warned about. In late December 2022, the Central Bank of Tunisia (BCT) raised interest rates by 75 basis points to battle rising inflation.

Throughout 2022, remittances from Tunisian’s abroad reached a record level of 8.5 billion dinars up from 7.5 billion in 2021. Income from remittances in 2022 dwarfed that even of tourism, which reached 4.3 billion dinars in 2022.

Outlook:  

Tunisian officials have acknowledged that 2023 will be a challenging year for Tunisians following economic challenges throughout the COVID-19 pandemic and the effects of the Russian war in Ukraine. Recent economic struggles have forced the Tunisian government to agree to austerity measures stipulated by the International Monetary Fund (IMF) and other lenders. We anticipate a steadily increasing risk of social unrest and economic disruptions, particularly in the form of labor strikes, in the near-term.

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