Tunisian Prime Minister Habib Essid on Saturday overwhelmingly lost a confidence vote in parliament, after just a year and a half in office.

A total of 118 MPs voted to unseat Essid, three voted for him to stay at the helm and 27 abstained.Since its 2011 revolution to oust Zine El Abidine Ben Ali, Tunisia has emerged as a democracy praised as a model for the region. But militant attacks have tested the government and political infighting has slowed economic progress.

Essid has said the country needs a more dynamic government ready to take audacious decisions to bring about the liberalization and cost-cutting required for an overhaul of the North African state's economy.

Three militant attacks last year - including gun attacks on foreign visitors at a museum and a beach resort - have badly damaged the tourism industry, which makes up around 8 percent of the economy and is a major source of jobs.