SWOT ANALYSIS OF TUNISIA

S Internal Strength 5700 industrial companies. Annual growth of companies is 52%. Tunisia Has achieved an enviable standing in Euro- Mediterranean region. Higher per capita income among Africa. Reasonable Infrastructure. Trained Work Force. Fast Access to Raw Materials (Agriculture). W Internal Weakness Growing competition in textile sector Fall in receipts from tourism and remittances. Tunisian Dinar has reached one of its lowest points in 2012. Lack of foreign and domestic investment. Unemployment is a major concern for the Tunisian government and continues to be a major hurdle in the country's economic progress.

O External Opportunity Domestic turmoil. Increase in public spending. Outsourcing. Structural reforms will help unleash medium-term growth potential. High Demand for Equipment and Technology in many Sectors. Improvement in governance and the business environment. Strengthening of the financial sector.

T External Threats Mediterranean climatic change. Iraq Extremist threats in Tunisia. Tunisias unrest and violence. Egypt is also threat to Tunisia. Political unrest.

Summary of Tunisian Economy

The 20102014 Development Plan that has been adopted by the government of Tunisia aims at strengthening the model of society to a knowledge-intensive one, and to achieve food security, improve national resources, give the national economy the efficiency needed to maintain financial stability. Reforms are expected to be carried out in six major axes: development of the economic structure toward an eco-friendly economy with a high technological component (creation of competitiveness poles); improvement of the business environment and attractiveness of the Tunisia-site; consolidation of the national economy's integration in the globalized economy (intensifying liberalization of exchanges and drive to the total convertibility of the dinar); and preservation of financial balances (a decisive factor to ensure the sustainability of the development process). Also,

the government plans to increase the private sector's share in investment to up to 60.8% by the end of the five-year period.

Tunisia business culture

Tunisia is one of the most liberal Muslim countries. Tunisia has a lot of cultural similarities with Middle Eastern and Mediterranean countries. Arabic is the official language, and while some businessmen speak English, Italian or German, French is usually the language of commerce. English and German are also spoken in major cities. Islam is practiced by the majority of Tunisians and governs their personal, political, economic, and legal lives.

Work culture Business generally starts at 8 am and finishes at 6 pm. Most businesses close for lunch from 12:30 pm to 2:30 pm, Monday through Friday. Businesses may also close at prayer times. During summer (July and August) and the month of Ramadan, the working system is applied to a single session (sance unique) with working day starting between 7 and 7.30 and ending between 1 and 2 pm.

Business structure Companies are hierarchical. The highest-ranking person makes decisions after obtaining group consensus. It generally takes several visits to accomplish simple tasks. Privilege and favoritism are common practices in Tunisian business. One should be aware of the fact that giving and receiving favors are deeply rooted in Tunisian society.

Tunisia economy
Main Economic indicators during 20082013
2008 GDP at current prices (billion USD) GDP per capita at current prices (USD) GDP (% change) Gross Fixed Investment (% change) Private consumption (% change) Exports (% change) 7.0 6.4 2.5 -1.5 2.0 41.8 2009 39.9 2010 40.5 2011 46.1 2012e 47.8 2013f

4,114.0

3,883.0

3,902.0

4,402.0

4,515.0

4.6

3.1

3.7

-0.7

2.8

7.6

10.3

4.0

2.0

4.0

3.5

-1.6

4.7

-2.9

3.6

Imports (% change) Consumer Price Index (% change, yearly average) Unemployment rate (%) Exchange rate (yearly average) TND / 1 USD
Exchange rate (yearly average) TND / 1 EUR

8.3

6.7

4.8

-0.2

4.6

4.9

3.5

4.4

3.7

3.5

12.4

13.3

13.0

16.0

15.8

1.23

1.35

1.43

1.40

1.41

1.81

1.88

1.90

1.97

1.92

Source: Economist Intelligence Unit