The European Bank for Reconstruction and Development expects the Tunisian economy to grow by 2.7 percent this year, but recovery will depend on economic reforms and the vital tourism sector. The strength of the recovery also depends on the frequency of the vaccination against "Covid-19", which allows the reopening of the economy, which includes the tourism sector. Whereas, the fiscal tightening is expected to limit the strength of any recovery.
Tunisia expected a growth of 3.9 percent this year, after the 8.8% of economy contraction in 2020, but the rapid spread of the Coronavirus indicates another bad tourist season, with foreigners reluctant to visit the country.
Tunisia's GDP shrank by 3 percent in the first quarter of this year (2021), compared to the same period a year ago. Tunisia, which posted a fiscal deficit of 11.4 percent of output last year, has started talks with the International Monetary Fund over a financial aid package. Economy and Finance Minister Ali Kooli suggested that Tunisia would reach an agreement with the IMF at the beginning of the third quarter of this year.
The data issued by the Ministry of Finance show that foreign loans were mobilized during the first quarter of this year, at about $325 million, while the repaid loans installments in the same period amounted to about $255 million.
Source (The New Arab Newspaper, Edited)
