The Tunisian economy has long suffered from low growth and social inequity, including high unemployment. In 2022, the government put together a comprehensive reform program to address structural weaknesses, unleash private sector growth and job creation, and pave the way for brighter economic prospects and have taken important steps to implement that program. More recently, favorable cyclical developments have helped reduce the fiscal and external deficits. Tourism has been strong and the prices of imports have fallen while the prices of some agricultural export commodities increased. However, regional drought has weighed on growth, which is expected to remain subdued in the medium term.