Country Economic Transformation Outlook (CETO): Tunisia

Tunisia ranks first among the 30 countries tracked on the African Transformation Index (ATI), reflecting the relative maturity of its economic model in comparison with other African countries. Since 2000, the Tunisian economy has shown resilience in the face of major shocks, including political upheaval, terrorist attacks, and the COVID-19 pandemic. The resilience of the economy is largely due to a robust services sector, as well as diversified industrial activities. Despite these outcomes, Tunisia’s performance under its adopted economic model shows its limits.

For example, inequalities remain deep and cut across regions, generations, and gender. Regional disparities are striking; in 2022 the poverty rate exceeded 35 percent in the center-west while it was less than 5 percent in greater Tunis. Unemployment is a persistent issue, especially for young people, where the jobless rate reached 37.7 percent in 2025. Gender gaps are mostly visible in economic integration with a female participation rate of 28.2 percent in the third quarter of 2025, far below the 64.9 percent rate for males. High public debt and persistent budget deficits limit the government’s capacity to invest in reducing inequalities or face future challenges that might worsen living standards and deepen disparities such as climate risks.

Ultimately, structural change is needed to overcome the limits of Tunisia’s current growth model, including the need to adapt to fast-paced global change, confront sustainability challenges, and create inclusive growth. This requires unlocking the full potential of younger generations by facilitating their socioeconomic integration and ensuring equal opportunities across gender and regions.

Guided by ACET’s Growth with DEPTH framework and building from the most recent ATI, the Tunisia Country Economic Transformation Outlook (CETO) assesses the country’s transformation performance while exploring the challenges to future progress. It also takes a deep dive into three sectors deemed particularly crucial to Tunisia’s economic transformation: renewable energy; micro, small, and medium enterprise (MSME) financing; and the digital economy. The CETO also emphasizes the importance of gender-responsive policymaking.

Using evidence-based analysis, the Tunisia CETO also provides targeted, actionable recommendations for the country’s sustainable economic growth. And by incorporating a distinct gender lens, it aims to address gender-specific barriers and opportunities to ensure that both men and women benefit from the country’s economic advancements.