The Economic Impact of Migrant Remittances in Tunisia

Tunisian authorities are relying on the continued growth of migrants' remittances, which have overtaken the tourism sector in economic importance in recent years. In 2023, remittances from Tunisians reached 2.7 billion dollars, according to the World Bank and the International Organisation for Migration (IOM). These remittances are a vital source of foreign exchange and help families maintain their purchasing power despite inflation, which has fallen from over 9% to 7.2% since last year.

Experts are pressing the government to speed up reforms and involve expatriates more in economic development, given the need to attract investment to consolidate the country's economy. According to the Central Bank of Tunisia, foreign currency remittances from expatriates increased by 3.5% in 2024, totalling 3.1 billion dinars (1 billion dollars) as of 10 June, compared with 3 billion dinars (983 million dollars) in the same period last year. These transfers, along with tourism revenues, help maintain the country's foreign exchange reserves, which stand at 24.36 billion dinars (7.85 billion dollars), equivalent to 112 days of goods imports.

As reported by Al Arab, the Tunisian community abroad, estimated at more than 1.8 million people, represents 15% of Tunisia's total population, with the majority residing in Europe. In a recent Migration and Development report, the World Bank noted that Tunisia is one of the top recipients of remittances in the Middle East and North Africa, ranking sixth in 2023. Remittances have helped the Tunisian economy overcome several crises, including the COVID-19 pandemic and President Kais Saied's exceptional measures in July 2021.

Economic expert Bassam Al-Nifer stressed the importance of remittances in boosting the economy and providing monetary resources, especially in the face of difficulties in obtaining budget funding from international institutions such as the International Monetary Fund (IMF). Al-Nifer stressed that remittances include both cash and in-kind transfers, with in-kind transfers reaching 1.161 billion dinars (374.5 million dollars) in 2023.

The daily and continuous frequency of transfers is also significant: in 2023, 25.3 million dinars (8.4 million dollars) were recorded daily during the 251 working days for banks. These remittances, which are converted into dinars upon arrival, are not withdrawn from the country and are mainly used for consumption, benefiting both the state and families.

Mohsen Hassan, former Trade Minister and Professor of Economics at the University of Tunis, agreed that remittances increase purchasing power and help service the foreign debt, which has grown considerably in 2024. Hassan explained that the investment environment in Tunisia has obstacles that discourage expatriates from investing in their country, although it is hoped that future reforms in foreign exchange laws may encourage more investment.

Ultimately, remittances from Tunisians abroad are essential to the country's economy, providing foreign exchange and supporting families, although there are significant challenges in channelling these remittances into productive investments that will drive long-term economic development.