Tunisia's economy worsens under President Saied's self-reliance plan

Tunisian President Kais Saied’s pledge to achieve economic self‑reliance has coincided with a further deterioration of the country’s financial situation. Since assuming expanded powers in 2021, Saied has promoted policies aimed at reducing dependence on foreign aid and external financing, including tighter capital controls, a slowdown in public procurement of imported goods and a push for domestic production in sectors such as agriculture and textiles.

The measures have not halted the macro‑economic decline. Tunisia’s gross domestic product contracted by 2.5 % in 2023, while inflation, driven by soaring food and energy prices, remained above 10 % through the first half of 2024. The Tunisian dinar continued to lose value against the euro, eroding household purchasing power and prompting a rise in unemployment to roughly 15 % of the labor force. International financial institutions, including the International Monetary Fund, have warned that the country’s fiscal deficit and external debt burden are widening, and they have urged reforms that contrast with Saied’s self‑reliance narrative.

Analysts note that without renewed external financing or structural adjustments, the self‑reliance strategy may further strain Tunisia’s already fragile economy. The government has signaled willingness to engage with the IMF for a new loan programme, but negotiations remain tentative, leaving the outlook for recovery uncertain.