This 2012 Article IV Consultation highlights that Tunisia experienced a severe recession in 2011 amid domestic and regional turmoil. Real GDP contracted by 1.8 percent, reflecting a sharp decline in tourism and foreign direct inflows. As a result of the economic downturn and the return of Tunisian workers from Libya, unemployment soared to 19 percent in 2011, with youth unemployment at 42 percent. Tunisia’s medium-term economic growth potential remains favorable, but unleashing it requires a comprehensive package of structural reforms to foster private investment.
This paper reviews economic developments in Tunisia during 1990–95. Despite adverse exogenous developments, including the Middle East crisis, weak economic growth in key European export markets and a severe drought, Tunisia achieved a strong economic performance during 1991–95. Real GDP growth rose to an annual average of 4.2 percent, resulting in an increase in per capita income of some 2 percent per year. Inflation fell from an average of 7 percent during the preceding five years to 5.8 percent during 1991–95.
Mr. Eduardo Borensztein, Mr. Peter Wickham, Mr. Mohsin S. Khan, and Ms. Carmen Reinhart
This paper analyzes global commodity trends and concludes that the marked decline in real commodity prices of the past decade should be regarded as largely permanent and irreversible. The authors contend that the analysis of commodity prices should be extended to include the role of the breakdown of major international commodity agreements. In addition, the authors analyze how developments in the former Soviet Union have affected commodity supply conditions.