Summary:

In November 2022, Tunisia’s trade deficit rose to record levels as the impacts of the COVID-19 pandemic and the country’s ongoing financial crisis further stressed the economy. The overall trade deficit widened from 14.6 billion dinars to 23.3 billion dinars, an increase of 59% from 2021. The primary trade relationships driving the deficit are China, Turkey, Algeria, Russia, and Italy. While the trade deficit has grown, overall trade has also grown. Energy and raw material products are driving the growth of exports, but still at a slower pace than the growth of imports.

Outlook:  

Tunisia’s economy continues to adapt to major shifts in the market caused by the Russian war in Ukraine and the COVID-19 pandemic. Dependence on imports will continue to cause issues for creditors and, therefore, supply chains, as the government bears a heavy subsidy burden across many industries. The country remains vulnerable to major supply chain disruptions that could have significant impacts on the quality of life and stability in the country, particularly as Tunisia struggles to finalize short-term funding options to meet urgent budget needs.