The report emphasizes Tunisia’s improved external balance, its narrowing trade deficit supported by favorable international prices, and its external financing needs that remain significant. The report underscores the urgency of addressing the drivers behind the external financing challenges, including energy deficit, debt service, and level of capital inflows. Faced with tighter external financing conditions, Tunisia has increasingly relied on domestic banks — and more recently to the Central Bank – to finance its budget. With strategic investments, particularly in renewable energy, Tunisia could significantly enhance its economic resilience and sustainability,” said Alexandre Arrobbio, the World Bank’s Country Manager for Tunisia. This project aims to improve the resilience of the Tunisia’s electricity system and transform it into a net exporter of electricity.
