Economic crisis casts shadow over Tunisian Ramadan festivities

Tunisia braces for a somber Ramadan amidst economic woes and political tensions

Tunisians are facing subdued Ramadan celebrations this year as the economic crisis tightens its grip on the North African nation. The once-crowded markets now witness a decline in foot traffic, reflecting the impact of soaring prices, recession, and rising unemployment.

Vegetable merchant Mohamed Doryi, 69, laments the noticeable shift, stating, “That’s not the case today,” referring to the sparser market compared to previous years. Doryi, adapting to the challenging times, no longer displays prices openly to avoid discouraging potential customers.

Traditionally, Tunisians stock up on large amounts of food in preparation for Ramadan festivities, marked by daytime fasting followed by elaborate meals with family and friends. However, this year witnesses a departure from the norm, with purchasing power diminishing due to soaring prices, a recession, and increased unemployment.

Fayka, a 65-year-old retiree, reflects the struggle, stating, “My pension doesn’t cover my needs,” highlighting the shift from buying fruits and vegetables in bulk to purchasing them individually.

Tunisia, already grappling with political tensions following President Kais Saied granting himself full powers in July 2021, faces economic challenges. A third of the country’s 12 million people live below the poverty line due to two years of high inflation, soaring food prices, and a tripling of the cost of many essential items.

Economist Ridha Chkoundali identifies Tunisia as experiencing “stagflation” – a decline in growth coupled with rising inflation. He attributes this to the authorities prioritizing debt repayment over supplying the market with essential foodstuffs and agricultural inputs, exacerbating shortages of subsidized items like flour, rice, sugar, and semolina.

The country’s public coffers, burdened by civil servant salaries exceeding 650,000, struggle to maintain regular supplies, leading to shortages. Tunisia’s banks, compelled to finance 80% of the country’s GDP in debt, face limitations in lending to the private sector, further stifling economic growth.

Chkoundali contends that a lack of resources results from Tunisia’s decision to break with the International Monetary Fund (IMF). In October 2022, the IMF agreed to lend around $2 billion, but President Saied rejected it, deeming the required reforms unsustainable.

In local markets, the impact of rising prices is evident. A 50-year-old woman, wary of the cost, cautiously orders 150 grams of veal ahead of Ramadan, where red meat exceeds 40 dinars per kilo. The struggle is echoed by Mustapha Ben Salmane, 52, a butcher who observes customers increasingly requesting minimal amounts of meat due to financial constraints.

As Ramadan approaches, the economic challenges in Tunisia cast a shadow over the festive spirit, leaving citizens grappling with the harsh realities of inflation and economic downturn.