Tunisia's economic growth reaches 2.4% in first half of 2026, falling short of government target
Tunisia's economic growth reached 2.3% in the second quarter of 2026 year-on-year, with a 1.4% increase compared to the first quarter. However, the annual growth rate has slowed for the third consecutive quarter, down from 3.4% in the third quarter of 2025. For the entire first half of 2026, the GDP grew by 2.4%. According to the National Institute of Statistics INS, while quarterly activity shows a rebound after stagnation in the first quarter, the annual slowdown persists. This trend is notable as the 2026 state budget projected a 3.3% growth for the year. To meet this target, growth must accelerate in the second half of the year. Agriculture and services were key drivers of growth in the second quarter. Agricultural value added increased by 5.5% year-on-year, contributing 0.51 percentage points to overall growth. Services saw a 1.9% increase in value added, contributing 1.18 percentage points, primarily supported by hotels, restaurants, cafes, information and communication activities, and transport. The construction sector also showed favorable development with a 3.6% rise in value added year-on-year. In contrast, the industrial sector showed mixed results. Manufacturing industries grew by 0.9% year-on-year, driven by agro-food, mechanical and electrical, and diverse industries. However, the energy, mining, water, sanitation, and waste treatment sector declined by 1.7%, mainly due to a 9.6% drop in mining and a 1.1% decrease in oil and natural gas extraction. Overall, the