The Importance of Finance and Insurance in the Economy
Finance and insurance are the lubricants that keep the economy running smoothly. Their added value, although intangible, is real because it enables all other sectors to produce more, invest, and innovate with confidence. Without them, the global level of production, and therefore GDP, would be significantly lower.
The Situation in Tunisia
In Tunisia, financial and insurance activities generated an added value of 4,099.7 million Tunisian dinars (MTND) during the 2024 fiscal year, contributing 4.2% to the country's GDP (at constant 2015 prices). Over the first nine months of 2025, the created value reached 2,825.3 MTND, representing 3.8% of the period's GDP. More intriguingly, there has been a continuous decline over the past four quarters. The added value of the third quarter of 2025 is, in fact, the lowest in five years, at only 894.3 MTND.
The Role of Financial and Insurance Activities
Financial and insurance activities create value not by producing physical goods, but by providing essential intermediate services that facilitate and secure all economic activity. These services include:
- Service margins
- Transformation of maturities and risks
- Risk assessment and pooling
- Commissions from capital allocation and advisory operations
- Transactions generating brokerage and management fees
The Impact on the Economy
The pressure on financial sector companies, whose profits are declining, will be reflected in future growth. If they do not finance production today, the entire economy will suffer. The impact on unemployment is faster and already visible. It is essential to be mindful of this point, as there is a tendency to view the financial sector as an industry that suffocates businesses and households, forgetting its concrete contributions to the economy.
Conclusion
The financial and insurance sectors play a vital role in the economy, and their decline can have far-reaching consequences. It is crucial to recognize their importance and take steps to support these sectors, ensuring that they can continue to provide essential services to businesses and individuals, and ultimately drive economic growth and development.
