A US State Department report published in September 2026 has identified weak growth, persistent inflation, high unemployment and rising public debt as major challenges facing Tunisia’s economy, Tunisian media reported this Wednesday.
Unemployment fell from 16 per cent in 2024 to 15.2 per cent in the fourth quarter of 2025, while the informal sector accounted for up to half of GDP. Subsidies reached 11.6 billion dinars in 2025, equivalent to 6.3 per cent of GDP.
The report linked intermittent food and medicine shortages to external financing difficulties and highlighted unprecedented central bank financing of the budget deficit.
Banks provide over 90 per cent of private sector financing, but collateral requirements restrict access for smaller businesses. Bad loans represented 14.4 per cent of bank lending in 2024. Foreign investors also face difficulties repatriating capital. A currency reform approved in 2024 remains pending, while a separate code has been under review since October 2025.
