Tunisia Economic Monitor, Winter 2021 : Economic Reforms to Navigate Out of the Crisis
The Economic Monitor examines four possible factors behind Tunisia’s slow recovery. First, the drop in mobility related to the pandemic may have been more harmful in Tunisia. However, mobility in Tunisia has dropped to a similar extent as other cou...
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| Format: | Report |
| Language: | English |
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World Bank, Washington, DC
2022
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| Online Access: | http://documents.worldbank.org/curated/undefined/454631642741750737/Executive-Summary http://hdl.handle.net/10986/36861 |
| Summary: | The Economic Monitor examines four
possible factors behind Tunisia’s slow recovery. First, the
drop in mobility related to the pandemic may have been more
harmful in Tunisia. However, mobility in Tunisia has dropped
to a similar extent as other countries and it has now
returned to pre-pandemic levels following the acceleration
in the vaccination campaign since July. If anything, the
mobility drop in Tunisia has resulted in a lower reduction
in economic activity than in comparator countries as Algeria
and Egypt. Second, it could be that the level of public
support to the ailing firms and households may have been
particularly low. However, at 2.3 percent of GDP, the
Covid-19 stimulus package in 2020 was in the same ballpark
as other comparators in the region. Third, the structure of
the Tunisian economy, particularly its reliance on tourism,
may have exposed it to the negative demand shock more than
other countries. Indeed hotels, cafe and restaurant and
transport are the sectors which have contracted the most
since the start of the pandemic. The losses of these sectors
explain a significant portion of the negative effects of the
crisis in Tunisia, although they do not fully account for
such slow recovery. |
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