Tunisia - Market OverviewTunisia - Market Overview
According to the U.S. International Trade Commission, in 2018 Tunisia was the United States’ 93rd-largest goods export market. Bilateral trade in goods reached $1.245 billion, with U.S. exports to Tunisia totaling $596.6 million. Top U.S. export categories were petroleum products, agricultural goods, chemicals, machinery, and transportation equipment. Major imports from Tunisia included crude oil, apparel, food products (mainly olive oil and dates), electronics, and electrical components.
Tunisia has a diverse market economy. According to Tunisia’s National Institute of Statistics (INS), real GDP growth in 2018 was 2.5%. The INS forecasts growth of 2.9% in 2019. Unemployment remains over 15% nationally, with even higher rates among youth, women, and recent college graduates. The Government of Tunisia (GOT) is focused on bolstering the country’s export sectors, attracting foreign investment, and increasing tourism. About 75% of Tunisian exports go to the European Union.
According to the INS, total exports in 2018 increased by 19% compared to 2017, mainly as a result of an increase in exports of energy and lubricants (+13%), agricultural products (+45.2%), mechanical and electrical components (+14%), and textile and apparel (+18.6%). In general, energy and mineral exports, mainly crude oil and phosphate, have exhibited high year-to-year variance, depending on production levels and market conditions. Olive oil exports registered an increase of 110.5%.
Tunisia’s imports increased by 20% in 2018 compared to 2017, as a result of an increase in the import of milk products and drivatives (+42.6%), gasoline (+47.5%), barley (+52.4), wheat (+27.5%), natural gas (+41.4%), and textile (+17.7%).
In September 2016, to encourage good governance over investment, the Tunisian Parliament passed Investment Law (#2016-71), which went into force April 1, 2017. The law provided for the creation of three major institutions: the High Investment Council; the Tunisian Investment Authority; and the Tunisian Investment Fund. These institutions were launched in February 2018. In May 2018, the government adopted decree #2018-417, which listed sectors that need prior government authorization for investment, also known as “the negative list.” In April 2019, the Tunisian Parliament passed a new bill containing 38 amendments to address shortcomings in existing laws and regulations that impeded investment. The bill aimed to bring the business climate to “international standards” and help Tunisia secure a top-50 ranking in the World Bank's Doing Business Report 2020.
According to the GOT’s Foreign Investment Promotion Agency (FIPA), overall foreign investment flows for 2018 surpassed $1 billion, primarily in the form of foreign direct investment (FDI), with about 4.3% in portfolio investment. This represented a 27.5% increase over 2017. The industrial sector received approximately 41% of all FDI inflows, while energy (33%) and services (23%) ranked second and third. At 3%, foreign investment in agriculture was insignificant. According to FIPA, these capital inflows (excluding the energy sector) generated 11,469 new jobs in 2018. As for foreign investment into Tunisia, France ranked first at just over $233.6 million in 2018. Qatar came in second at $158.7 million, followed by Italy at $55.7 million. The United States FDI flow into Tunisia in 2018 was $10.4 million.
About 8 million tourists visited the country in 2018, a 17.4% increase from 2017. This is the first time since the 2011 revolution that Tunisia surpassed 2010 tourist numbers. The largest groups of tourists came from North Africa, particularly Libya and Algeria, and from Russia. French and German tourists increased respectively by 37.4% and 52.4% compared to 2017. As a result, 2018 overall tourist bed nights increased by 22.8% compared to 2017. The tourist zone of Djerba-Zarzis saw the biggest uptick (+46%). Tourist receipts in foreign currency increased by 30.13% in 2018 compared to 2017. The Ministry of Tourism expects 9 million tourists in 2019, with many hotels in Tunisia’s main tourist areas likely to be fully booked for the summer season. The number of tourists who visited the country in the first quarter of 2019 was 27% above 2018 levels.
Consumer prices rose by 7.5% in 2018, higher than 2017 (5.3%). Inflation was 6.9% in April 2019 and is expected to remain high, hovering around 7% for the remainder of the year.
Tunisia registered a $4.47 billion current account deficit in 2018 compared to $4.1 billion the previous year. As a consequence, net foreign currency assets at the end of 2018 amounted to $5.28 billion, corresponding to just 84 days of imports. Tunisia’s 2018 trade deficit reached $6 billion, which is a 22.65% increase compared to 2017.
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.
Tunisia has a diverse market economy. According to Tunisia’s National Institute of Statistics (INS), real GDP growth in 2018 was 2.5%. The INS forecasts growth of 2.9% in 2019. Unemployment remains over 15% nationally, with even higher rates among youth, women, and recent college graduates. The Government of Tunisia (GOT) is focused on bolstering the country’s export sectors, attracting foreign investment, and increasing tourism. About 75% of Tunisian exports go to the European Union.
According to the INS, total exports in 2018 increased by 19% compared to 2017, mainly as a result of an increase in exports of energy and lubricants (+13%), agricultural products (+45.2%), mechanical and electrical components (+14%), and textile and apparel (+18.6%). In general, energy and mineral exports, mainly crude oil and phosphate, have exhibited high year-to-year variance, depending on production levels and market conditions. Olive oil exports registered an increase of 110.5%.
Tunisia’s imports increased by 20% in 2018 compared to 2017, as a result of an increase in the import of milk products and drivatives (+42.6%), gasoline (+47.5%), barley (+52.4), wheat (+27.5%), natural gas (+41.4%), and textile (+17.7%).
In September 2016, to encourage good governance over investment, the Tunisian Parliament passed Investment Law (#2016-71), which went into force April 1, 2017. The law provided for the creation of three major institutions: the High Investment Council; the Tunisian Investment Authority; and the Tunisian Investment Fund. These institutions were launched in February 2018. In May 2018, the government adopted decree #2018-417, which listed sectors that need prior government authorization for investment, also known as “the negative list.” In April 2019, the Tunisian Parliament passed a new bill containing 38 amendments to address shortcomings in existing laws and regulations that impeded investment. The bill aimed to bring the business climate to “international standards” and help Tunisia secure a top-50 ranking in the World Bank's Doing Business Report 2020.
According to the GOT’s Foreign Investment Promotion Agency (FIPA), overall foreign investment flows for 2018 surpassed $1 billion, primarily in the form of foreign direct investment (FDI), with about 4.3% in portfolio investment. This represented a 27.5% increase over 2017. The industrial sector received approximately 41% of all FDI inflows, while energy (33%) and services (23%) ranked second and third. At 3%, foreign investment in agriculture was insignificant. According to FIPA, these capital inflows (excluding the energy sector) generated 11,469 new jobs in 2018. As for foreign investment into Tunisia, France ranked first at just over $233.6 million in 2018. Qatar came in second at $158.7 million, followed by Italy at $55.7 million. The United States FDI flow into Tunisia in 2018 was $10.4 million.
About 8 million tourists visited the country in 2018, a 17.4% increase from 2017. This is the first time since the 2011 revolution that Tunisia surpassed 2010 tourist numbers. The largest groups of tourists came from North Africa, particularly Libya and Algeria, and from Russia. French and German tourists increased respectively by 37.4% and 52.4% compared to 2017. As a result, 2018 overall tourist bed nights increased by 22.8% compared to 2017. The tourist zone of Djerba-Zarzis saw the biggest uptick (+46%). Tourist receipts in foreign currency increased by 30.13% in 2018 compared to 2017. The Ministry of Tourism expects 9 million tourists in 2019, with many hotels in Tunisia’s main tourist areas likely to be fully booked for the summer season. The number of tourists who visited the country in the first quarter of 2019 was 27% above 2018 levels.
Consumer prices rose by 7.5% in 2018, higher than 2017 (5.3%). Inflation was 6.9% in April 2019 and is expected to remain high, hovering around 7% for the remainder of the year.
Tunisia registered a $4.47 billion current account deficit in 2018 compared to $4.1 billion the previous year. As a consequence, net foreign currency assets at the end of 2018 amounted to $5.28 billion, corresponding to just 84 days of imports. Tunisia’s 2018 trade deficit reached $6 billion, which is a 22.65% increase compared to 2017.
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.