Tunisia Government Consumption (ann. var. %)

Government Consumption in Tunisia

GDP grew 1.6% year on year in Q4 (Q3: 2.9%), meaning it expanded 2.5% over 2022 as a whole—the fourth-worst performance in MENA. Turning to Q1 2023, available data is downbeat. Inflation rose to highs not seen since 1984, likely knocking private spending; imports—which rise when consumers spend more—grew just 1.6%, the least since Q4 2020. The external sector also seemed weak, with exports growing the least since Q4 2020. In other news, on 3 May the IMF said it was “almost” done lining up funds for its long-delayed USD 1.9 billion rescue package. On the day the comments were made, Tunisian bonds were the best performing among emerging markets. The IMF’s comments came despite the President saying that he would not consider further spending cuts and against the background of a growing migrant crisis and a crackdown on political dissent.