Tunis, Tunisia (October 20, 2024) – The World Bank has revised downward its economic growth forecast for Tunisia in 2024, citing a range of factors including regional instability and domestic challenges.
In its latest report, “Growth in the Middle East and North Africa,” the World Bank lowered Tunisia’s projected growth rate to 1.2% from the previous estimate of 2.4% announced in April. The bank anticipates that the country’s growth will stabilize at 2.2% in 2025.
The broader Middle East and North Africa (MENA) region is also experiencing sluggish growth, primarily due to ongoing conflicts and uncertainties. The region’s GDP is expected to increase slightly to 2.2% in 2024, up from 1.8% in 2023. This modest improvement is largely attributed to stronger cooperation with Gulf countries.
However, the growth outlook for oil-producing countries in the region remains subdued. Oil-supplying countries are projected to see a decline in growth from 3.2% in 2023 to 2.1% in 2024. Meanwhile, non-Gulf oil exporters are expected to experience a slight slowdown from 3.2% to 2.7%.
In addition to Tunisia, the World Bank has also lowered its growth forecast for Egypt. The bank now predicts that Egypt’s economy will expand by 2.5% in the 2024/2025 fiscal year, down from the previous estimate of 4.2%. This downward revision reflects challenges such as a weakened manufacturing sector, import restrictions, and reduced activity in the gas and maritime sectors.
The World Bank’s report highlights the potential for the MENA region to stimulate growth through technological advancements, increased international trade, and improved data transparency. By fostering innovation and knowledge sharing, the region can unlock its economic potential.
