According to the 2021 Economic Freedom Index, the Tunisian economy is a “mostly unfree” economy. The country scores 56.6 (compared to 55.8 in 2020) and ranks 128th out of 177 countries, 9 ranks above its ranking in 2020.
It is also 21st in Africa and 9th in the Arab world.
This index is based on a global vision of the principle of economic freedom and analyzes 12 factors grouped into 4 pillars: the rule of law, the size of government (expenditure, taxes, taxation), regulatory efficiency and the openness of the Marlet. Each of the 12 factors is scored between 0 and 100 (0 being the worst score), with a country’s score being the average of these 12 scores.
On the occasion of the publication of this index of economic freedom for the year 2021, the Tunisian Institute for Competitiveness and Quantitative Studies (ITCEQ) published a report on March 1 on the main competitive performance indicators of Tunisia and on the elements that degrade this performance.
According to the institute, including all economic players in the design, monitoring and evaluation of public decisions is essential to the proper functioning of the economy and today there is a real lack of communication and coordination on the part of the government at this level.
In addition, the fight against tax evasion and for more transparency must become a priority. It is therefore necessary to modernize the tax administration so that it can fully exercise its control role.
Other recommendations were established by the institute such as setting up tax and financial incentives to encourage the informal sector to integrate the economic circuit, facilitating hiring and dismissal measures, stimulating public and private investment in the port sector to develop import-export operations, simplify administrative procedures by moving towards digitalisation, etc.
Source Embassy of France in Tunisia