Tunisians Struggle to Make Ends Meet as Prices Rise
As prices continue to rise, Tunisians are finding it increasingly difficult to cope with the cost of living, with salaries largely disconnected from reality. To make ends meet, many have no choice but to resort to overdrafts, commonly known as "going into the red". By the end of 2024, debit accounts, a sub-category of consumer credit, had totaled 1,931 million Tunisian dinars (Mtnd), an increase of 155 Mtnd over the year. In practical terms, this sum represents the salary increases that households need to supplement their income. And that's not all, as only a portion of the population has access to banking services. Furthermore, access to overdrafts is not automatic: a minimum income and stable employment are required. For this year, it is certain that the threshold of 2,000 Mtnd will be exceeded. We have the figures for debit accounts for all economic agents, including companies. As of August 2025, they stood at 10,458.045 Mtnd, an increase of 1,445.549 Mtnd in just eight months. For companies, these amounts are used to finance their working capital needs and fill the gap of under-capitalization, a structural characteristic of Tunisian companies. We can imagine the impact that interrupting this mechanism would have on consumption. There would be a sharp decline in purchases and demand for services, resulting in lower revenues and lower tax receipts for the state. These cash flow facilities, although costly for account holders, remain a lifeline, a necessary evil.
Key Statistics
- Debit accounts totaled 1,931 Mtnd by the end of 2024, up 155 Mtnd from the previous year
- As of August 2025, debit accounts for all economic agents, including companies, stood at 10,458.045 Mtnd, an increase of 1,445.549 Mtnd in eight months
- The threshold of 2,000 Mtnd is expected to be exceeded this year
Economic Implications
The reliance on overdrafts and debt to make ends meet has significant implications for the Tunisian economy. The potential consequences of interrupting this mechanism include:
- A sharp decline in consumption and demand for services
- Lower revenues and tax receipts for the state
- Increased financial strain on households and companies already struggling to cope with the cost of living.
