HomeNewsTunisia: ITCEQ recommends developing restructuring strategy for export sector

Tunisia: ITCEQ recommends developing restructuring strategy for export sector

While Tunisia’s trade deficit has been steadily deteriorating since 2006 (it stood at TND 19.4 bn in 2019, or 16.9% of GDP), due to the strong dynamism of imports and the slow pace of increase in exports, the Tunisian Institute of Competitiveness and Quantitative Studies (ITCEQ) has published a note on Tunisia’s trade deficit that analyzes its structural and cyclical components and proposes measures to absorb it.

The report presents in a first part an overview of the evolution and size of the trade deficit for each business sector of the Tunisian economy, allowing to identify those responsible for its deterioration.

Thus, the sector of textiles, clothing and leather and that of mines, phosphates, traditionally in surplus, have not been able to absorb the persistent deficits of other sectors such as the energy sector (imbalance between an increase in demand and a declining supply) and that of mechanical and electrical industries.

According to the report, the terms of trade and the economic situation of partner countries (prices and demand for goods) account for a large part of the downward trend in the trade balance.

Domestic demand explains only a small part of it. Since the deficit is mainly structural, ITCEQ recommends developing a strategy to restructure the Tunisian export sector based on non-price competitiveness (innovation, design, delivery times, etc.) and on the specialization of companies.

The reduction of regulatory barriers and the development of trade activities with other markets, such as Sub-Saharan Africa, are also tracks to follow to reduce the trade deficit.

With regard to imports, and in order to slow down their rate of growth, it seems important to boost the productive apparatus and stimulate integration into global value chains.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisement -

MOST POPULAR

HOT NEWS