Tunisia¡¯s economic growth is slowly gaining steam. After recovering modestly to 2 percent in 2017, growth accelerated to 2.5 percent in Q1 of 2018 and 2.8 percent in Q2 (y-o-y), supported by agriculture, tourism, and export-oriented manufacturing, particularly electrical and mechanical industries. On the demand side, growth was driven by exports and investment. Unemployment remained high at 15.4 percent in Q1 of 2018, but dipped slightly among graduates, recording 29.3 percent compared to 29.9 percent in Q42017.
Growth is projected to reach 2.4 percent in 2018, before gradually approaching its potential of about 3.4 percent over the medi-um term against a backdrop of improved business climate through structural reforms and greater security and social stability. Growth will be supported by expansions in agriculture, manufacturing, and tourism-related services. Poverty is projected to stay unchanged at around 8.7 percent using the 3.2 U$ PPP per day line and around 1.9 percent using the extreme poverty line (1.9 U$ PPP per day).