Tunisia’s Economy Grows 2.8% Despite Difficulties

A general view of Tunis, Tunisia. (Reuters)
A general view of Tunis, Tunisia. (Reuters)
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Tunisia’s Economy Grows 2.8% Despite Difficulties

A general view of Tunis, Tunisia. (Reuters)
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.



Berlin Eyes Partnership with Riyadh in Expo 2030, Climate Cooperation, Hydrogen Initiatives

Saudi and German flags fluttering - File Photo/Asharq Al-Awsat
Saudi and German flags fluttering - File Photo/Asharq Al-Awsat
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Berlin Eyes Partnership with Riyadh in Expo 2030, Climate Cooperation, Hydrogen Initiatives

Saudi and German flags fluttering - File Photo/Asharq Al-Awsat
Saudi and German flags fluttering - File Photo/Asharq Al-Awsat

A senior German official affirmed his country’s commitment to strengthening cooperation with Saudi Arabia across various fields, noting that bilateral trade relations continue to grow steadily, with trade volume reaching around 7 billion Euros.

Speaking to Asharq Al-Awsat, German Ambassador to Saudi Arabia Michael Kindsgrab said: “The sectors driving this growth—chemicals, machinery, and transport—reflect the strong industrial connections we share. These are areas where German expertise is making a real difference in Saudi Arabia’s development.”

He added: “Looking ahead, there is much to be excited about. Expo 2030 is an incredible opportunity for us to further deepen our collaboration, showcase the best of what both Saudi Arabia and Germany have to offer, and inspire future generations to continue building on this remarkable partnership.”

German Ambassador to Saudi Arabia Michael Kindsgrab - Asharq Al-Awsat

Renewable Energy

On climate cooperation, the official said: “As for climate cooperation, we have just launched a relevant study on the Saudi labor market in the renewable energy sector, which was reviewed by the National Labor Observatory and discussed with experts of KAPSARC, KaCare and PSU. This is a great example of our close and meaningful partnership, tackling the challenges of today with an eye on the future.”

Blossoming Relations

Kindsgrab noted that Saudi-German relations are truly blossoming, saying: "I am proud to see our partnership becoming deeper and stronger across so many areas. From a personal perspective, it is inspiring to witness the growing bonds between our two countries. These ties span a wide range of sectors, including energy, transport, architecture, health, education and culture—creating a solid foundation for the future.”

“One of the most exciting aspects of our cooperation is in the area of energy transition. German innovation is at the heart of NEOM’s green hydrogen projects, with Thyssenkrupp Nucera playing a key technological role in making the vision of decarbonization of industry a reality,” he affirmed.

“Beyond energy, we’re also seeing significant progress in transport, where Siemens’ delivery of metro wagons helped to shape the modern infrastructure of Saudi cities. And let’s not forget the impact of German architecture in megaprojects such as King Salman Park or the design of Expo 2030, which I believe will be a landmark event for both our countries, ” added Kindsgrab.

“In the health sector, the collaboration with Charité in Berlin is another example of how our nations are working together to improve lives.”

Accelerated Cultural Cooperation

“And now, I am particularly excited to see the acceleration of cultural cooperation, such as the recently launched museum initiative between the Saudi Museums Commission and the Prussian Cultural Heritage Foundation of Germany,” the German ambassador stressed.

“This cooperation emerged as part of our shared efforts to strengthen people-to-people ties and will play an enriching role for the cultural relations, as it includes a loan program for artworks, joint curatorship and training programs to support talent development,” he concluded.