Historical Trend
Current GDP per capita soared by more than 380% in the Seventies (1970–1980: USD 280–1,369). But this proved unsustainable and it collapsed to a cumulative 10% growth in the turbulent Eighties (1980–1990: USD 1,369–1,507), rising again to almost 50% cumulative growth in the Nineties (1990–2000: USD 1,507–2,245), signifying the impact of successful diversification.
This is a chart of trend of gross domestic product of Tunisia (estimated) by the International Monetary Fund with figures in millions of Tunisian Dinars.
| Year | Gross Domestic Product (Constant Prices - Billions) | US Dollar Exchange (PPP) | Inflation Index (2000=100) |
Per Capita Income (as % of USA) |
|---|---|---|---|---|
| 1980 | 7.620 | 0.244 Tunisian Dinars | 29 | 11.16 |
| 1985 | 9.358 | 0.305 Tunisian Dinars | 46 | 6.59 |
| 1990 | 10.816 | 0.347 Tunisian Dinars | 65 | 6.50 |
| 1995 | 13.074 | 0.401 Tunisian Dinars | 85 | 7.36 |
| 2000 | 17.181 | 0.440 Tunisian Dinars | 100 | 5.85 |
| 2005 | 21.372 | 0.437 Tunisian Dinars | 114 | 6.89 |
| 2007 | 23.966 | 0.439 Tunisian Dinars | 120 |
For purchasing power parity comparisons, the US Dollar is exchanged at 0.44 Tunisian Dinars only. Mean wages were $4.17 per manhour in 2009.
Growing foreign debt and the foreign exchange crisis in the mid-1980s. In 1986, the government launched a structural adjustment program to liberalize prices, reduce tariffs, and reorient Tunisia toward a market economy.
Tunisia's economic reform program has been lauded as a model by international financial institutions. The government has liberalized prices, reduced tariffs, lowered debt-service-to-exports and debt-to-GDP ratios, and extended the average maturity of its $10 billion foreign debt. Structural adjustment brought additional lending from the World Bank and other Western creditors. In 1990, Tunisia acceded to the General Agreement on Tariffs and Trade (GATT) and is a member of the World Trade Organization (WTO).
In 1996 Tunisia entered into an "Association Agreement" with the European Union (EU) which removes tariff and other trade barriers on most goods by 2008. In conjunction with the Association Agreement, the EU is assisting the Tunisian government's Mise A Niveau (upgrading) program to enhance the productivity of Tunisian businesses and prepare for competition in the global marketplace.
The government has totally or partially privatized around 160 state-owned enterprises since the privatization program was launched in 1987. Although the program is supported by the GATT, the government has had to move carefully to avoid mass firings. Unemployment continues to plague Tunisia's economy and is aggravated by a rapidly growing work force. An estimated 55% of the population is under the age of 25. Officially, 14% of the Tunisian work force is unemployed.
Read more about this topic: Economy Of Tunisia
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