Main Sectors of Industry

Agriculture is a key sector of the Tunisian economy, accounting for 10.1% of GDP and employing 14% of the workforce (World Bank, latest data available). The country has 9.7 million ha of agricultural land, equivalent to 62% of its total land area (FAO). An improvement in production methods in recent years has allowed the sector to develop and modernise (cultivation of olive trees, fruit trees and palm trees) while enabling the country to reach a level of food sufficiency. Organic farming is also booming, with Tunisia being one of the most productive countries in Africa. Olive oil accounts for the largest share of agricultural exports, followed by dates, olives and fresh fruits. According to the latest figures from the National Observatory for Agriculture, the value added of the agricultural sector increased by 2% year-on-year in the second quarter of 2022, following a 3.3% increase recorded in the first quarter.

Industry represents 23.1% of the GDP and employs 33% of the active population. The country's industrial sectors are predominantly export-oriented. Among sectors in decline, there are the leather and shoe industry, paper, cardboard, plastic, and wood. The chemicals and textiles and clothing sectors had been growing in recent years; however, the economic crisis triggered by the Covid-19 pandemic impacted especially the textile and clothing sector and the mechanical and electrical engineering sub-sectors, which are still recovering. Overall, the manufacturing sector is estimated to account for 14% of GDP (World Bank). According to the latest figures from the National Statistical Institute, in Q3/2022, industrial production fell by 1.2% compared to the previous quarter, due to the decline recorded in the manufacturing (-0.5%) and in the mining and quarrying industries (-4.8%). Production was also down in the energy sector (-3%), the agricultural and food industries (-4.6%), mining (-15.9%), and the oil refining sector (-7.5%).

The local economy is largely orientated towards services, which account for 60.1% of the GDP, including the booming sectors of ICT (information and communication technologies) and tourism. Professional training and research are both rising sectors. The services sector as a whole employs 53% of the country's workforce. The tourism industry is also important to the country’s economy: after suffering from the international restrictions imposed during the COVID-19 pandemic, it showed signs of recovery in 2022 when Tunisia received 6.12 million tourists, marking a sharp increase of 159% compared to the previous year. Nevertheless, tourist arrivals were still 32% lower than in 2019, when the country welcomed a record 9.43 million tourists (data by the National Tourism Office).

Source: World Bank - Latest available data.

Political Outline

Current Political Leaders

President: Kaïs Saïed (since 23 October 2019)
Prime Minister: Najla Bouden Romdhane (since 11 October 2021)

Next Election Dates

Presidential: 2024
Assembly of the Representatives of the People: December 2024

Current Political Context

Tunisia is characterised by a very unstable political context. In October 2019, Kais Saied won the presidential elections over Nabil Karoui and seized exceptional powers in the context of social unrest due to the worsening economic situation caused by the COVID-19 pandemic. In September, Saied suspended the legislature and secured public backing in a July 25th 2022 referendum for a new constitution that weakens the parliament's powers in favour of the presidency. In fact, the new government does not need the approval of the parliament, and cannot be censored without a two-thirds majority of both parliament and a council of regional representatives, whose structure has yet to be defined. The first round of the parliamentary elections that took place in December 2022 saw just 11.2% of registered voters take part, the lowest turnout of any national vote since the 2011 revolt that overthrew Zine El Abidine Ben Ali. Most political parties have been sidelined by a system that bans candidates from declaring allegiance to a political grouping and called for a boycott of the elections, whose second round should take place at the end of January 2023.

Main Political Parties

There are hundreds political parties. The two dominant parties:
- Ennahda: moderate Islamist
- Nidaa Tounes: secular, modernist, concerned with security

Other noteworthy parties:
- Popular Front: leftist; formed by fusion between socialist, progressive, green, and Arab nationalist parties
- Afek Tounes: centre-right, secular, liberal
- Tahya Tounes: secular, liberal, bourguibis
- Machrouu Tounes: big tent secularist

Executive Power

The President of the Republic is the Head of State. The President is elected for five years by universal, free, direct and secret suffrage, and by an absolute majority of the votes cast. The President creates general policies in regard to national security, international relations, and defence. He sees to the regular functioning of the constitutional public authorities and ensures the continuity of the State. The President is limited to a four-term mandate. The President nominates the Prime Minister, who is the Head of Government. The Prime Minister is normally selected from the members of the party or electoral coalition that obtained the highest number of seats in the parliamentary elections. The Prime Minister appoints the ministers and Secretaries of State; however, the Ministers of Foreign Affairs and Defence are designated with the accord of the President.
Following a 2022 constitutional referendum, the President has now more powers since he is in charge of appointing the prime minister and the government members, without the need to seek the approval of the parliament, and cannot be censored without a two-thirds majority of both parliament and a council of regional representatives. Furthermore, the president can dismiss the members of the government unilaterally.

Legislative Power

The people exercise legislative power through a representative assembly, the Assembly of the Representatives of the People, or by referendum. The Assembly is composed of 217 deputies elected by universal, free, direct and secret suffrage for a five-year term.
The new 2022 constitution created a second chamber of parliament called the Council of Regions and Districts. It consists of people elected by members of the regional and district councils instead of by universal suffrage (art. 81). Overall, the new constitution weakens the powers of the parliament, which can still draft and enact laws but can only pass a motion of no confidence in the government with a two-thirds majority.