Tunisia’s economic prospects have taken a hit as the World Bank revised its growth forecast downward,projecting a modest 1.9% expansion in 2025,down from an earlier estimate of 2.2%.
The outlook for the following years is even more subdued,with growth expected to slow to 1.6% in 2026 and 1.7% in 2027.
The downgrade reflects a combination of persistent structural challenges,weak private sector performance,and global economic uncertainty,according to the World Bank’s latest regional economic update.
Tunisia continues to grapple with high public debt,rising inflation,and limited fiscal space,amid limited reforms.
Public debt is estimated at 81.2% this year,while inflation is expected to stand at 6.7%. The budget deficit would shrink to 6% of GDP.
While the reform package includes tax amnesties,new corporate tax structures,and social security adjustments,implementation has been slow and investor confidence remains fragile.
The World Bank noted that private investment remains sluggish,hindered by regulatory bottlenecks,political uncertainty,and limited access to credit. These factors have stifled job creation and innovation,particularly in the manufacturing and digital sectors.
One of the few bright spots in the outlook is the agricultural sector,which is expected to rebound in 2025 thanks to improved weather conditions. However,analysts caution that this recovery is weather-dependent and unlikely to drive long-term growth without deeper structural reforms.
United News - unews.co.za