The Economic Activity of Tunisia

Tunisia has been back on its economic track with a vengeance. Sound fiscal management and economic reforms gradually revived the economy from the 1970’s downfall. In fact, it has been acclaimed in the World Economic Forum 2008-2009 as economically competitive in Africa (Rank 1) and in the World (Rank 36). More reforms are further instituted to sustain this impressive global breakthrough.

Resources wise, the country is blessed with natural endowments useful in income-generating pursuits. These include hydrocarbons such as crude oil and natural gas; minerals such as iron, phosphate, and salt; food agriculture such as almonds, citrus, dates, grains, olives, and tomatoes. All these comprise the highly-priced possessions of the State towards stronger economic foundation.

In accordance with GDP contribution (2008), the three major sector players are services (61%), industry (28%), and agriculture (11%). Service sector is powered by commerce, communication, and tourism. Industry is propelled by food processing, mining and mineral exploitation, petroleum extraction, and textile manufacture. Agriculture is fuelled by agricultural products that include dairies, fruits, grains, and olives. Also, export as a billion dollar industry (approx. $20 billions), has also been helpful to raise the GDP with textile products as its forerunner.

Tunisian economy is closely affiliated to the European market. In 1987, the European Union became its primary benefactor of Foreign Direct Investment. In 2008 then, it declared abolishment of custom tariffs and duties imposed on European goods in accordance with the Association Agreement with the European Union. Europe has also been consistent recipient of exports from the country in particular France (18.5 %), Italy (17.2), and Germany (7%).