Tunisia’s GDP growth recovers to 1% y/y in Q1

By bne IntelliNews May 18, 2016

Rising manufacturing output offset subdued services contribution and shrinking agriculture sector, lifting Tunisia’s GDP growth to a still anchored 1.0% y/y in the first quarter of the year from a 0.3% annual expansion in Q4 2015, the statistics office INS said in a preliminary estimate. In quarterly terms, the GDP grew 0.4% in Q1.

The reading, despite being relatively optimistic, confirms the central bank concerns about economic growth this year. The c-bank is desperately seeking to lure further FDI, spur lending and consequently GDP growth. To achieve this, Tunisia’s central bank has kept the benchmark interest rate at 4.25% at its latest MPC sitting, seeking to reignite the tumbling GDP growth amid slowing CPI inflation and contracting industrial output.

The EBRD forecasts 1.6% GDP growth in 2016, accelerating from just 0.8% last year.

Falling olive oil output (down 60% y/y in Q1) cut Tunisia’s agro sector--and main job generator--by 2.5% y/y during the quarter. The manufacturing sector, however, expanded 1.4% y/y in Q1 on growing chemicals output (up 29% y/y), construction (up 4.2% y/y), mechanical and electrical equipment (up 1.7%) and textiles (up 0.7%).

The services sector rose 1% y/y in Q1 mainly on higher output in the telecoms sector (up 5.1% y/y), financial services (up 3.8%) and transport (up 1.3% y/y in Q1). As to the value-added tourism sector, it shrank 12% y/y in Q1 as it failed to recover from the impact of the terrorist attacks that too place in 2015. 


Related Articles

Lebanon becomes European Bank for Reconstruction and Development shareholder

Lebanon has become the fifth member country from the Southern and Eastern Mediterranean (SEMED) region to join the European Bank for Reconstruction and Development (EBRD), becoming a shareholder with ... more

Evolution Equity Partners closes $125mn cybersecurity-focused fund

Evolution Equity Partners announced on 17 July the final closing of a new fund with total capital commitments of $125mn to make investments in cybersecurity and next generation enterprise software ... more

US lifts laptop ban on Turkish Airlines flights as of July 5

Passengers boarding an early morning July 5 Turkish Airlines (THY) flight to John F Kennedy International Airport in New York were allowed to include laptops and electronic devices larger than a ... more