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Policy1d ago

Tunisia grapples with five years of crisis since Saied’s power grab

Bell summary

Tunisia faces severe economic and political challenges five years after President Kais Saied suspended parliament and consolidated power in July 2021. Investment rates have collapsed from 20% of GDP to 8%, while food inflation and unemployment have surged, prompting criticism from opposition figures and economic experts.

The full story

Tunisia's political landscape remains fractured half a decade after President Kais Saied's decisive consolidation of executive authority. Supporters characterize the 2021 suspension of parliament and dismissal of Prime Minister Hichem Mechichi as corrective measures necessary for national stability. Critics counter that institutional collapse and unprecedented power concentration have followed, leaving promises unfulfilled and governance severely compromised.

The economic toll has been substantial. Investment as a share of gross domestic product has contracted sharply, falling from an average of 20 percent during 2015–2019 to just 8 percent by 2023, according to economics professor Ridha Chkoundali of the University of Tunisia. Tax burdens have intensified, rising five percentage points since 2015, yet revenues now serve collection rather than growth stimulation. The resulting environment actively discourages capital inflows and business expansion.

Ordinary citizens have borne the heaviest burden. Food price increases have reached nearly triple the general inflation rate, eroding household purchasing power. Joblessness has accelerated, particularly among university graduates, driving emigration in search of better prospects. Former state minister Mohamed Abbou attributes the crisis to governance style, arguing that rule of law has yielded to intimidation and that institutional instability—in taxation, regulation, and legal frameworks—has destroyed international confidence.

Abbou has also criticized Saied's handling of international financial negotiations, noting that the president rejected an International Monetary Fund agreement to preserve a populist image while quietly adopting many of its austerity prescriptions, including public sector hiring freezes and import restrictions. Government supporters, however, contend that pre-existing economic difficulties should not be attributed solely to Saied's administration.

Written by Bell Data Intelligence · based on reporting by Al Jazeera.Read the original ↗
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