Tunisia’s economy is still growing, but high prices, weak job creation and heavy borrowing have left many households worse off seven years into Kais Saied’s rule.
01Summary
- 01Tunisia’s annual inflation rate rose to 5.6% in September 2026, up from 4.8% in January, while food and beverage prices increased by 8.4% year on year.
- 02The economy grew by 2.3% year on year in the second quarter of 2026, below the 3.3% annual growth target in the 2026 Finance Law.
- 03Overall unemployment fell to 14.9% in the second quarter of 2026 from 15.3% a year earlier, but unemployment among 15 to 24-year-olds was 35.4%.
- 04Domestic borrowing reached about 7 billion dinars in both 2024 and 2025, with 11 billion dinars borrowed at the beginning of 2026, according to figures cited by economist Ridha Chkoundali.
- 05Taxi driver Houssam Oueslati said engine oil that cost about 35 dinars in 2018 can now cost close to 100 dinars, forcing him to work longer hours.
02Why it matters
The story shows that lower inflation and modest growth do not automatically mean relief for households. For readers in Tunisia, the key issue is whether wages, jobs and borrowing conditions can catch up with rising living costs.
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