Tunisians usually prepare for the holy month by storing large quantities of basic foodstuffs (French)

In the popular Bab El Fella market in the Tunisian capital, a retired woman says, “This is the first time in my life that I have bought fruits and vegetables piecemeal,” in a country whose already “exhausted” population faces a continuing rise in the cost of living, especially with the approaching month of Ramadan, in which family consumption increases.

Tunisians usually prepare for the holy month by storing large quantities of basic food items.

But this year, the rise in prices amid the economic recession and high unemployment rates greatly affects their purchasing power.

Faika (65 years old) says, “I am not poor, but I can no longer afford it. My pension no longer allows me to cover my needs.”

Faika deprives herself of even minced red meat, the price of a kilogram of which exceeds 40 dinars (more than 12 euros), and she says with regret, “Today I can only buy low-quality materials and by piece.”

She continues, "The situation has never been so difficult and stifling before. I have to stand in queues to get some products (those supported by the state) and pay electricity and water bills, sometimes late."

Weak movement

Muhammad Al-Darai, a 69-year-old vegetable seller, no longer displays his prices on public signs for fear of alienating his customers.

“At this time before, it was not possible to set foot in the market, because it was very crowded, and the situation has changed today,” he explains, pointing to the narrow street where pedestrian traffic seems weak.

Tunisia, with a population of 12 million, has suffered from two years of high inflation rates (10% on average annually) with food prices sometimes tripling, leading to a decline in the conditions of the working and middle classes.

The economic growth rate in 2023 reached about 0.4%, affected by an ongoing drought crisis that has been ongoing for 5 years, which has destroyed agricultural crops.

The country entered an economic recession at the end of 2023, and unemployment rose again (16.4% at the end of 2023 compared to 15.2% in 2022), while 4 million Tunisians live below the poverty line.

The country has been living under the impact of an ongoing political crisis since President Kais Saied decided to monopolize full powers in July 2021.

Part of the movement of the central market in the capital, Tunis, before Ramadan (French)

 Stagflation

In a meat shop, a fifty-year-old woman timidly asks for 150 grams of beef.

She whispers to the seller, "My husband died recently, and I can't buy any more."

Butcher Mustafa bin Salman, 52 years old, explains, “There are many, many people who ask for two dinars of minced meat (less than 100 grams) or 1.5 dinars of sausage. I cannot tell them no. People are exhausted,” adding that he is “fed up with the situation.” ".

He added, "Most people are suffering from financial difficulties. The salaries were disbursed before the month of Ramadan, and (the next salaries) will not arrive until shortly before Eid (expected next April 10), so most people find themselves without income," while many During the month of Ramadan, expenses and consumption.

“Economically, we are witnessing a period of stagflation, that is, a decline in growth and a rise in inflation,” says economist Reda Al-Shakandali, which has a “double impact on the purchasing power of Tunisians,” leading to “a decline in real income.”

External debt pressure

Among the reasons for reaching this situation, the economic expert points to “the authorities’ deliberate choice to prefer repaying debts, especially foreign debts, at the expense of supplying the market with basic foodstuffs and agricultural materials,” such as fertilizers and fodder.

The Tunisian government has a central monopoly on purchasing subsidized products, and the lack of funds in the public treasury, which is also burdened by the salaries of more than 650,000 government employees, regularly causes shortages of some materials such as flour, rice, or sugar.

In addition, the demand on Tunisian banks to finance the country's debt (80% of GDP) is increasing, which undermines their ability to lend to the private sector and small and medium-sized companies.

The lack of resources also results from “the option to suspend negotiations with the International Monetary Fund,” according to Al-Shakandali’s estimates.

Last year, President Saied rejected an initial agreement concluded with the International Monetary Fund to obtain a new loan worth two billion dollars, considering the reforms recommended by the Fund, including the restructuring of government companies and the gradual lifting of subsidies on some basic products, as “dictations.”

Source: French