Tunisia’s economy grew 2.8% in Q2 2022

• Tunisia’s trade deficit widened to $4.36bn in the first seven months
• Budget deficit is expected to widen to 9.7% of GDP

Tunisia’s economy recorded a growth rate of 2.8 percent in Q2 of this year compared to the same period in 2021, the country’s statistics agency said on Monday.

The National Institute of Statistics’ data also showed that Tunisia’s trade deficit widened to 13.7 billion dinars ($4.36 billion) in the first seven months of 2022 from 8.7 billion dinars ($2.77 billion)in the same period of 2021.

Budget deficit is expected to widen to 9.7 percent of GDP this year from a previously forecast 6.7 percent, Reuters reported in July, citing central bank Governor Marouan Abassi.

This is due to a stronger dollar and sharp rises in grain and energy prices – knock-on effects of the Ukraine war that Abassi said have generated an additional $1.6 billion of financing needs.

State finances were already stretched by one of the highest public sector wage bills in the world compared to the size of the economy, and heavy spending on imported energy and food subsidies.