Tunisia’s Economy: On the Brink of Collapse?
With economic growth sputtering and unemployment undecreasing, Tunisia’s economy is teetering on the brink of collapse on the eve of the upcoming presidential elections. Burdened by a colossal national debt of 80% GDP, the nation struggles to afford its imports, leading to widespread shortages of essential goods.
The country’s precarious financial situation is further exacerbated by its reliance on foreign loans and bailouts. Legal expert Majid Bouden paints a grim picture, labeling the current economic model as “an economy of predation, rent, and without production.”
Young Tunisians are particularly disillusioned with the stalled economy, with a staggering 40% unemployment rate in the first quarter of the year. Many are driven to emigrate, with seven out of ten expressing a desire to leave the country.
However, a glimmer of hope emerges from the burgeoning startup scene. Young entrepreneurs are leading innovative startups in fields like artificial intelligence, and are successfully penetrating global markets. This entrepreneurial spirit offers a potential lifeline for a nation stifled by its dysfunctional government.
Foreign currency earnings from Tunisian expatriates are expected to reach over 10 billion dinars this year, highlighting the significant financial impact of emigration. While this influx of money offers some relief, it also underscores the alarming exodus of skilled professionals.