Summary:

On 6 January 2023, Swedish multinational clothing brand H&M announced plans to close its two storefronts in Tunisia, citing economic reasons. The closure of the Tunis City and Azur City locations was scheduled to take place on 8 January 2023. H&M has closed numerous physical store locations following the business impacts of the COVID-19 pandemic.

Outlook:  

H&M’s decision to exit the Tunisian market follows other announcements of concern or potential exit following the publication of the 2023 finance law. The austerity measures, including tax increases, will continue to disrupt the investment landscape as the implementation of the 2023 law continues. We anticipate near- and medium-term economic impacts that will continue to drive an increase in protests, demonstrations, and strikes that raise the potential for conflict with security forces.

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