Tunisia’s Foreign Direct Investment Drops 14.2%

A man walks towards the Central Bank in Tunis (Reuters)
A man walks towards the Central Bank in Tunis (Reuters)
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Tunisia’s Foreign Direct Investment Drops 14.2%

A man walks towards the Central Bank in Tunis (Reuters)
A man walks towards the Central Bank in Tunis (Reuters)

Foreign direct investment (FDI) flows in Tunisia dropped 14.2 percent during the first half of 2020 compared to same period last year, and during the first three months of the current year the decline was 24.1 percent.

The foreign investments stood at about DT1.1 billion by the end of H1 2020, showing a downward trend over the past two years.

A significant decline was seen in FDI of service sector with 50.8 percent, and industry sector and energy with foreign direct investments dropped 13.3 percent and nine percent, respectively. However, agricultural investment saw an 18 percent increase.

The Tunisian Investment Authority announced that the local market had received 34 projects until the end of July, which means the number of projects has doubled compared to the same period last year, creating about 9,086 job opportunities.

The Tunisian economy shrank 21.6 percent by the end of the second quarter of 2020, which led the Tunisian Confederation of Industry, Trade and Handicrafts, to call upon the government to activate the state of emergency to salvage the economy.

The Tunisian Ministry of Finance had published statistical data on the results of the 2020 budget.

During H1 of 2020, direct tax revenues fell by 11.4 percent, corporate tax dropped 18.7 percent, and income performance also declined by 4.6 percent.

A decline in customs was recorded by 12.9 percent, performance on value added tax decreased 15.5 percent, and consumption declined by 8.3 percent.

As a result of the decline in the state's resources, the government resorted to borrowing, which it hopes would support its resources, amounting to about DT7.2 billion out of the DT11.2 billion allocated in the Finance Law for the year 2020.



Oil Prices Inch up on Geopolitical Risks, Easing Tariff Worries

A view shows an oil pump jack outside Almetyevsk, in the Republic of Tatarstan, Russia July 14, 2025. REUTERS/Stringer/ File Photo
A view shows an oil pump jack outside Almetyevsk, in the Republic of Tatarstan, Russia July 14, 2025. REUTERS/Stringer/ File Photo
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Oil Prices Inch up on Geopolitical Risks, Easing Tariff Worries

A view shows an oil pump jack outside Almetyevsk, in the Republic of Tatarstan, Russia July 14, 2025. REUTERS/Stringer/ File Photo
A view shows an oil pump jack outside Almetyevsk, in the Republic of Tatarstan, Russia July 14, 2025. REUTERS/Stringer/ File Photo

Oil prices edged up on Thursday on signs of easing trade tensions, stronger than expected economic data from the world's top oil consumers and renewed risks in the Middle East.

Brent crude futures were up 17 cents, or around 0.3%, to $68.67 a barrel at 0856 GMT. US West Texas Intermediate crude futures were up 31 cents, or 0.5%, at $66.69.

"Oil thinking has been distracted from the Middle East, and the reminders of Israel's attacks into Syria and the drone attacks on oil infrastructure in Kurdistan are timely and once again add a little fizz to proceedings," said John Evans, analyst at PVM Oil Associates, Reuters reported.

"Any other incident that deprives the market of barrels will be added to the low inventory narrative and we expect prices to continue to hold with any risk being to the upside."

Drone attacks on oilfields in Iraq's semi-autonomous Kurdistan region have slashed crude output by up to 150,000 barrels per day, two energy officials said on Wednesday, as infrastructure damage forced multiple shutdowns.

Meanwhile, US President Donald Trump has said letters notifying smaller countries of their US tariff rates would go out soon, which along with his renewed optimism about prospects of a deal with Beijing on illicit drugs and an agreement possible with Europe helped calm investors.

"Trump softened tones on China and proposed lower tariff rates on smaller countries, which are seen as positive developments in the global trade outlooks," said independent analyst Tina Teng.

"China's better-than-expected economic data and the US's larger-than-expected oil inventory draw have both been bullish factors for oil prices."

US crude inventories fell more than expected by 3.9 million barrels to 422.2 million barrels last week, the Energy Information Administration said on Wednesday, suggesting stronger refinery activity, tighter supply, and increased demand.

However, larger than expected builds in gasoline and diesel inventories capped price gains, raising concerns of weakening demand from summer travel, ANZ analysts said in a note on Thursday.

Data showed that China's June crude oil throughput was up 8.5% from a year ago, implying stronger fuel demand.