Economy of Tunisia

The diverse Tunisian economy hinges on tourism, mining, agriculture, manufacturing and exports to EU. The economy is based on sound market-driven economic reforms launched in the late 1980s.

The government's tight control of economic affairs has gradually lessened over the past decade with increasing privatization, simplification of the tax structure, and a prudent approach to debt.

About 20 percent of the Tunisian workforce is engaged in agriculture, which contributes nearly 11 percent of the GDP and 10 percent of overall exports.

Real growth, averaging 5% for the latter half of the last decade, slowed to a 15-year low of 1.9% in 2002 because of agricultural drought, slow investment, and lower levels of tourism due to the conflict in Iraq.

Better rains in 2003, however, pushed GDP growth up to an estimated 6 percent, and tourism also recovered after 'the end of combat operations' in Iraq. GDP growth remained at 6% in 2004.

The mining and minerals industry (excluding oil and gas), contribute to 3% of Tunisia's GDP. The Ministry of Industry regulates the oil industry in Tunisia. The state owned petroleum company is L' Tunisienne d' Petrolieres (ETAP), while the Société Nationale de Distribution du Pètrole (SNDP) is the national distribution and marketing company.

Tourism is a significant source of revenue and foreign exchange. Tunisia' primary trading partners are France, Italy, Germany, Belgium, Luxembourg, and the Maghreb countries.