| Tunisia 2008 Year in Review |
| Local news |
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In the December report devoted to Tunisia, Oxford Business Group shows a positive attitude towards Tunisian economy in these times of crisis all around the world. Below are excerpts of the report: …Against an adverse background affected by the global economic crisis, Tunisian economy has turned out to be surprisingly robust by the end of the year 2008. The significant amount of progress towards greater privatization and liberalization is made possible thanks to the measured and steady manner in which the country tends to implement fundamental economic reforms. On a macroeconomic level, Tunisia has posted healthy growth numbers whilst managing to keep down inflation. GDP growth in 2008 is estimated at an average of 5.1% - a rate that is lower than 2007's 6.3%, but a strong showing nonetheless, particularly given the slowdown in the Euro zone, Tunisia's largest trading partner. Furthermore, in spite of massive rises in commodity prices of building materials and foodstuffs, inflation slowed down at a modest 5%, compared to record rates in excess of 12% in other regional countries such as Egypt or Jordan. Tunisia's domestic banking sector, which has experienced a number of difficulties for a few years, posted impressive numbers for 2008, in spite of the volatile international environment. In September, two of the country's largest banks, state-owned Société Tunisienne de Banque and Banque de l'Habitat, posted year-on-year revenue growth numbers of 9.3% and 14%, respectively in the year ending on September 31st 2008, while one of the country's largest private bank, Banque de Tunisie, posted a 15% profit rise in the same period. Thanks to the government's commitment to move Tunisia to a knowledge-based economy, the level of penetration and sophistication of the telecoms and IT sectors has been rapidly improving as well. Recently released figures from the Ministry of Communications Technologies show that by September of 2008, the contribution of the ITC sector to the national gross domestic product (GDP) had reached nearly 10%, up from 7.8% at the start of 2007, and in line with the government's policy to increase the sector's share of GDP to 13.5% by the beginning of 2012. A new regulatory and technical framework was also introduced by presidential decree in June of 2008 for voice-over IP (VoIP) services, while the IT sector's customer base has expanded in recent years thanks in part to a PC loan and financing project, the Familial PC program. Over 22,000 PCs have been purchased through the program, boosting the overall PC penetration rate to around 650,000. The World Economic Forum in its 2008 Global Information Technology Report - which assesses ICT readiness, accessibility and regulation – ranked Tunisia 35th. It comes hence in the second position in the Middle East and North Africa region after the United Arab Emirates, and well in advance of other regional players such as Jordan (47th) and Morocco (74th). In a bid to shake up the country's telecommunications providers, the Tunisian government will also launch an international tender for a universal telephone licence next year, releasing the fixed-line sector from the current state-owned monopoly and bringing in a third competitor to the GSM sector. Tunisia's more traditional industries have also been showing strong growth. In spite of the slowdown in its European markets, tourism, one of Tunisia's key economic sectors and the country's second largest employer after agriculture, has grown steadily over the first nine months of 2008, with record revenues expected by the end of the year. Official figures released in October showed that Tunisia's tourism revenues rose by 9% year-on-year to approximately $1.8bn for the first nine months of 2008. By the end of the year, taking into account seasonal changes in demand, the government expects visitor numbers to reach 7 million and tourism revenues to increase by a total of 8% to reach a record of 2.4 billion dollars. The physical appearance of the country is changing rapidly as well, with a set of colossal real estate and infrastructure projects in the works. Sama Dubai received state approval for the company's massive 25 billion dollars "Mediterranean Gate" retail, residential and commercial project on the shores of Lac Sud. Across the city, Emirati developer Bukhatir has begun construction on the $5bn Tunis Sports City, a mixed-use development along La Marsa highway in the northern suburbs of Tunis, scheduled for completion in 2015. Nearby, Abu Dhabi-based Al Maabar has also announced plans for Bled El Ward, a 10 billion dollars, 5000-ha development on the northern outskirts of Tunis, while Bahrain's Gulf Finance House is similarly moving forward on its 3 billion dollars Tunis Financial Harbour project. Additionally, Tunisia's infrastructure is getting a big lift, with a new 700 million dollar airport and 2 billion dollar deepwater port in nearby Enfidha, both of which will help increase the country's transit links with neighboring countries. Work has also begun on a new regional railway network as well as on numerous roads, hotels and tourist resorts along the Mediterranean coast. In spite of continued global economic uncertainty, the Tunisian government is expecting 2009 to shape up to be an equally fruitful year. In the recently released 2009 budget, the government has increased its spending plans by 12% to over $12bn, on the back of $1.75bn in foreign investment flows and a GDP growth rate of 5%. The inflation rate is predicted to drop to a more manageable 3.5%, as plans for further privatization and liberalization move forward. |
