The National Institute of Statistics in Tunisia revealed that the country's economy shrank 3 percent in the first quarter of 2021 compared to the previous year 2020, which reflects the impact of the Corona virus pandemic on the tourism sector, as tourism represents about 8 percent of Tunisia's GDP, which is a major source of foreign currency.
During the first quarter of 2020, Tunisia's GDP contracted by 1.7 percent compared to the same period in 2019.
Tunisia had approved a reform document containing proposals that would be presented to the International Monetary Fund with the aim of obtaining a loan program. The government also plans to achieve a gradual reduction of subsidies in the coming period, leading to its final cancellation in 2024, and will replace it with cash payments to the needy. Tunisia also seeks to reduce the wage block to 15 percent of GDP in 2022, compared to 17.4 percent in 2020. It is driven by reforms that the government seeks to implement without social costs.
(Al-Sharq Al-Awsat Newspaper, Edited)
