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Tunisia Shortages Hit Water, Sugar, Rice Despite 2.4 Percent Growth
(MENAFN) Tunisia is grappling with shortages of staple goods and bottled drinking water even as its economy shows signs of recovery, exposing weak points in the country's supply, distribution and import chains.
The scarcity points to deeper economic fragility, driven by global climate pressures, public finance constraints and hoarding. It comes despite official figures showing 2.4% growth in the first half of the year, powered by a rebound in agriculture and tourism. The situation recalls the widespread bread shortage of summer 2023.
Economist Bassem Ennaifer told media that Tunisia's public finances have absorbed three major back-to-back shocks in six years: the COVID-19 pandemic, the Russia-Ukraine war and newly emerging economic pressures. He said the ongoing shortages of subsidized goods such as sugar, rice and tea stem from the debt burden and funding constraints at the Tunisian Trade Office. The recent bottled water shortage, he added, reflects distribution disruptions, as wholesalers no longer hold the large stockpiles needed to absorb heat-driven surges in demand.
Economics professor Ridha Chkoundali said the shortages have gone beyond seasonal demand. He called on policymakers to adopt comprehensive reforms, warning that structural, financial and regulatory problems will keep the crisis going. Cash-flow problems in public finances have delayed imports of subsidized products, he said, while power cuts and technical faults at local facilities have hampered production.
Chkoundali noted that the 2.4% growth fell short of the 3.3% target. He warned the recovery could lose further momentum in the second half because of rising oil prices and instability in the Middle East.
Strong farm output has done little for domestic food supplies. A boom in Tunisian olive oil production yielded limited local benefit because the vast majority was sent to export markets.
Chkoundali also cautioned that shrinking water resources and rising energy costs could eventually threaten fuel supplies, risking fresh waves of shortages if the current problems go unaddressed.
Tunisian authorities blame hoarding and market manipulation. The administration of President Kais Saied has accused speculators of deliberately stockpiling goods to trigger a politically charged crisis.
The scarcity points to deeper economic fragility, driven by global climate pressures, public finance constraints and hoarding. It comes despite official figures showing 2.4% growth in the first half of the year, powered by a rebound in agriculture and tourism. The situation recalls the widespread bread shortage of summer 2023.
Economist Bassem Ennaifer told media that Tunisia's public finances have absorbed three major back-to-back shocks in six years: the COVID-19 pandemic, the Russia-Ukraine war and newly emerging economic pressures. He said the ongoing shortages of subsidized goods such as sugar, rice and tea stem from the debt burden and funding constraints at the Tunisian Trade Office. The recent bottled water shortage, he added, reflects distribution disruptions, as wholesalers no longer hold the large stockpiles needed to absorb heat-driven surges in demand.
Economics professor Ridha Chkoundali said the shortages have gone beyond seasonal demand. He called on policymakers to adopt comprehensive reforms, warning that structural, financial and regulatory problems will keep the crisis going. Cash-flow problems in public finances have delayed imports of subsidized products, he said, while power cuts and technical faults at local facilities have hampered production.
Chkoundali noted that the 2.4% growth fell short of the 3.3% target. He warned the recovery could lose further momentum in the second half because of rising oil prices and instability in the Middle East.
Strong farm output has done little for domestic food supplies. A boom in Tunisian olive oil production yielded limited local benefit because the vast majority was sent to export markets.
Chkoundali also cautioned that shrinking water resources and rising energy costs could eventually threaten fuel supplies, risking fresh waves of shortages if the current problems go unaddressed.
Tunisian authorities blame hoarding and market manipulation. The administration of President Kais Saied has accused speculators of deliberately stockpiling goods to trigger a politically charged crisis.
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