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Tunisia’s Economy Grows 2.8% Despite Difficulties

Tunisia’s Economy Grows 2.8% Despite Difficulties

Tuesday, 16 August, 2022 - 08:15
A general view of Tunis, Tunisia. (Reuters)

The Tunisian economy grew 2.8 percent during the second quarter of 2022 annually, according to the National Institute of Statistics.


The Institute said the growth is due to the high value-added growth rate in the services sector, which amounted to 5.2 percent annually.


However, compared to the growth rate in the first quarter, the gross domestic product (GDP) fell by 1.0 percent due to the decline in the construction and the industrial sector.


Tunisia has been facing a political crisis after President Kais Saied suspended most of the constitutional institutions and put a new constitution to a referendum on July 25.


The country seeks to establish a margin of stability to implement reforms demanded by international financial institutions.


After months of technical consultations, the International Monetary Fund (IMF) announced its willingness to start formal negotiations with Tunisia for a lending program.


Meanwhile, the Tunisian trade balance recorded a deficit of $4.3 billion during the first seven months, compared to $2.7 billion during the same period in 2021, according to the National Institute.


Tunisian exports saw a 23.1 percent increase, and imports rose 31.6 percent.


The Institute revealed a decline in the unemployment rate in the country during the second quarter of this year to 15.3 percent.


The unemployment rate was 16.1 percent in the first quarter of this year and 16.2 percent in the last quarter of 2021.


Thousands of Tunisians leave the country each year due to the difficult economic situation, the faltering political transition since 2011, and the lack of job opportunities.


During the second quarter of 2022, over 626,000 Tunisians were unemployed, a third of whom are graduates, according to the National Institute of Statistics.


The Tunisian National Observatory of Migration estimates that 36,000 individuals leave the country each year due to a lack of job opportunities and low wages.


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