Economic overview
Tunisia was profoundly affected by the Jasmin Revolution of 2011. The demonstrations were brought about by high unemployment, food inflation, defilement, an absence of political opportunities and helpless day to day environments. In spite of the removing of long-term president Zine El Abidine Ben Ali in January 2011, the nation has never recuperated financially. The all around dubious circumstance was compounded in 2020 by the Covid-19 pandemic emergency. Gross domestic product arrived at a negative pace of – 7% in 2020. As per the IMF’s refreshed October 2020 figure, GDP development is required to get to 4% in 2021 and balance out at 2.9% in 2022, on account of the post-pandemic worldwide financial recuperation.
Public debt was recorded at 84.8% in 2020 and, as indicated by refreshed IMF assessments of October 2020, is required to increment to 86.2% in 2021 and 88.2% in 2022. The general spending deficiency expanded to 6.1% of GDP in 2020, because of the Covid-19 crisis measures. The IMF anticipates that the deficit should decrease to 3% in 2021 and 1.6% in 2022. Inflationhas been assessed at 5.8% in 2020, and is required to tumble to 5.3% for 2021 and 4.6% for 2022. The current record deficiency stayed high, at 8.3% of GDP for 2020, yet improved (from 8.5% in 2019) as imports declined quicker than trades.
Main sectors of industry
Agriculture is a key sector of the Tunisian economy, representing 10.4% of the GDP and utilizing 12.7% of the labor force (World Bank, 2020). An improvement underway techniques in the previous years has permitted the area to create and modernize (development of olive trees, organic product trees and palm trees), while empowering the nation to arrive at a degree of food adequacy. Natural cultivating is likewise blasting, with Tunisia being quite possibly the most gainful nations in Africa. Olive oil represents the biggest offer in farming fares, trailed by dates, olives and new organic products. Farming and agri-food exercises on the nearby market have been influenced by the Covid-19 pandemic. The populace essentially expanded its stock levels, boosting interest for wheat items by 26% and causing significant interruptions in circulation channels.
Industry addresses 22.7% of the GDP and utilizes 32.5% of the dynamic populace. The country’s mechanical areas are dominatingly trade arranged. Among areas in decay there are cowhide and shoe industry, paper, cardboard, plastic, wood, food and development materials. Be that as it may, the synthetics and materials and attire areas were developing until 2019. The monetary emergency because of the Covid-19 pandemic affected the modern area, mostly the material and dress area and the mechanical and electrical designing sub-areas. Control measures and limitations have intensified the drop in unfamiliar interest for the creation of these subsectors, decreasing fares of mechanical and electrical designing and materials by 27% by (year-on-year) mid-2020.
Taxation for businesses
Tunisian-resident companies are subject to CIT in Tunisia on the basis of profits generated from permanent establishments (PEs) located in Tunisia and those attributable to Tunisia by virtue of a double tax treaty (DTT). Non-Tunisian-resident companies are subject to CIT on the basis of their Tunisian-sourced income.
- The general CIT rate applicable to profits realized from January 1st, 2021 will be 15%
- The rate of 15% is applicable to small enterprises
- The CIT rate of 15% is applicable to enterprises operating in strategic sectors
Investing in Tunisia
The principle financial backers in Tunisia are the UAE, France, Qatar, Italy and Germany. Most of FDI in 2019 was allotted to industry (USD 450 million), trailed by energy (USD 300 million) and administrations (USD 95 million). As far as stock, fabricating is by a wide margin the area that pulls in many ventures, trailed by the travel industry and media communications.
Financial backer certainty is recuperating with the finish of psychological oppressor assaults, as confirmed by the developing number of worldwide traveler appearances as of late. The critical resources of Tunisia are its vicinity to Europe, sub-Saharan Africa and the Middle East, international alliances with the EU and a lot of Africa and an informed labor force.