Tunisia’s economy finally looks like it’s turning a corner after years of slow growth and the long shadow of COVID-19. The World Bank’s latest numbers show real GDP climbing 2.4% in the first nine months of 2025. That is because there has been a boost in construction, and tourists coming back. Growth should hit 2.6% by the end of the year, then settle around 2.4% through 2027. Still, the country faces some big hurdles, such as productivity, investment and money.

However, inflation has dropped a lot, down to 4.9% in October 2025 from 10.4%. Food prices have dropped as well, mostly because energy and cereal prices around the world have come down. Despite this, Tunisia’s current account deficit grew to 2% of GDP since imports picked up but exports didn’t, but strong tourism receipts, remittances, and a 41% surge in foreign direct investment helped cushion the impact.

Fiscal indicators also show improvement. The budget deficit narrowed to 6.3% of GDP in 2024, while public debt remains high at about 84.5% of GDP. The World Bank emphasizes that reforms to improve public enterprise performance and foster competition are essential to sustain recovery. These measures, combined with stronger social protection, could help Tunisia build a more resilient economy.

A key highlight of the report is Tunisia’s expanding social safety nets. The AMEN cash transfer program has now reached about 10% of the population. The World Bank recommends sharpening targeting, improving regional equity, and expanding digital tools to enhance efficiency. It also stresses the importance of extending insurance to informal workers to broaden economic inclusion. Alexandre Arrobbio, World Bank Country Manager for Tunisia, noted that strengthening social protection alongside fiscal sustainability will be vital for reducing inequality and ensuring shared prosperity.