Economy

Though relatively poor by Western standards, Tunisia is one of the more developed and prosperous countries of Africa. Its economy has become increasingly diversified since the late 1950's and less dependent on agriculture, the economic mainstay for centuries. To increase food production, combat poverty, reduce high unemployment, and lessen the heavy dependence on imports, the Tunisian government has undertaken a series of development programs. Accomplishments include irrigation projects, land reform and crop diversification, and the attraction of substantial foreign investment. In addition, since the discovery of oil in the early 1960's, petroleum production has provided an increasingly valuable source of income. Since 1976 petroleum has been Tunisia's leading earner of foreign exchange.

Tunisia's warm climate, seaside and desert resorts, and Roman ruins and other historic sites attract numerous tourists. Also important to the economy are banking, phosphate mining, and money sent home by Tunisians working abroad. Tunisia's basic currency unit is the Tunisian dinar.

More Tunisians are employed in agriculture than in any other economic activity. Modern farming methods are used on cooperatives and large private estates, but the methods used on the numerous small peasant holdings tend to be outdated and inefficient. Harvest size varies greatly from year to year, largely because of variations in the amount of rainfall.

Farming is done primarily along the coast and in inland valleys in northern Tunisia. The chief crops are typical of Mediterranean lands and include wheat, barley, citrus fruits, wine grapes, olives, and vegetables. Livestock, especially sheep and goats, are raised in substantial numbers.

Crop production is minimal in southern Tunisia. Of some significance are the raising of livestock and the collecting of esparto grass (for papermaking). A number of oases in the Sahara produce dates.

Petroleum is the country's most valuable mineral resource. Some of the petroleum comes from the south, but most comes from offshore wells, especially in the Gulf of Gabès. Also mined are phosphates, of which Tunisia is one of the world's largest producers.

The fishing industry is only moderately developed but meets local demands. The catch comes from offshore Mediterranean waters and includes bream, mullet, pilchard, and sardines.

has undergone considerable expansion, and Tunisia's factories now produce a fairly wide variety of consumer and industrial goods. Numerous foreign companies have been attracted to Tunisia, mainly because of financial incentives granted by the government.

Among the chief industries are food processing, fertilizer manufacturing, and textile making. Most manufacturing activity is in the coastal cities. Tunis is the chief center. The Bizerte-Menzel Bourguiba area has heavy manufacturing, including iron and steelmaking, petroleum refining, and tractor and vehicle assembly.

The country's roads and railways are largely in northern and central Tunisia. The leading ports include Tunis-La Goulette, which handles more than half of Tunisia's foreign trade, Sfax, Sousse, and Bizerte. The state-controlled airline has flights to Europe and the Middle East as well as within Tunisia. A large international airport is in Tunis.