Search

Tunisia has a diverse economy able to produce internationally competitive goods and services. In terms of the shares of public and private sectors, Tunisian economy can be called as a mixed economy. In the last five years period, fixed capital formation as a share of gross domestic product (GDP) in Tunisia on average was 23.5%. When compared with other countries in the region, this rate can be considered as significantly higher. However, this level of fixed capital formation is not enough in generating employment for young people. The share agricultural value added in GDP and food production index have declined significantly in the last five years. These two developments led to an increase in food price inflation. Food price inflation was an important factor behind the developments which led to the revolution. Per capita income in Tunisia is about 73 percent of that of Middle East and North African Countries. During the 2006-20010 period, on average, current account deficit as a share of GDP is -3.1%. The best way in financing current account deficit is direct fixed capital (DFC). However, the share of DFC in Tunisia on average is 5.3%. [ABSTRACT FROM AUTHOR]