The World Bank has released its summer 2026 economic report on Tunisia, stating that the country's economy is continuing to show signs of recovery. According to the report, Tunisia's real GDP grew by 2.7% in 2025 and 2.4% on an annual basis during the first half of 2026. This growth is a positive indicator for the country's economic prospects, despite ongoing structural challenges and external pressures.
The report highlights that Tunisia's real GDP has surpassed its pre-COVID-19 levels, having returned to its 2019 level in the last quarter of 2024 and continuing to improve in 2025 and the first half of 2026. However, the report also notes that the performance of various economic sectors has been uneven. The food industry, mechanical and electrical industries, hotels, and restaurants have contributed to growth, while the fuel, textile, and financial sectors have experienced declines.
The World Bank report also discusses Tunisia's external balances, noting that the country's energy and current account deficits have widened due to rising oil prices and the impact of the conflict in the Middle East. On the other hand, inflation has continued to decline, reaching 5.1% in July 2026, down from its peak of 10.4% in February 2023.
The report dedicates a significant portion to the challenge of water resources in Tunisia, highlighting that the country's water scarcity has become a significant economic factor. With renewable freshwater resources available per capita below the absolute scarcity threshold of 500 cubic meters per year, Tunisia faces considerable challenges in managing its water resources.
According to the World Bank, Tunisia has experienced below-average rainfall over eight of the past ten years, exacerbating the country's water scarcity issues. This has significant implications for the country's agriculture, industry, and overall economic development.
The World Bank's report emphasizes the need for Tunisia to address its water resource challenges, which will require a comprehensive strategy to manage and conserve water resources effectively. This may involve investing in water-saving technologies, improving irrigation systems, and promoting water conservation practices.
The report's findings are consistent with recent data from Tunisia's National Observatory of Agriculture, which reported a 50.8% increase in olive oil exports and a trade surplus of 983.1 million dinars in food products as of August 2026. These positive trends in the agricultural sector could help support Tunisia's economic recovery, but the country still faces significant challenges in managing its water resources and promoting sustainable economic growth.
Key points
- Tunisia's economy is recovering with a 2.7% GDP growth in 2025 and 2.4% in the first half of 2026.
- The country's water scarcity has become a significant economic factor, with renewable freshwater resources available per capita below the absolute scarcity threshold.
- The World Bank report emphasizes the need for Tunisia to address its water resource challenges through a comprehensive strategy to manage and conserve water resources effectively.
