The World Bank expected the Tunisian economy to grow by 2.4 percent by the end of the current year if the decline in European demand is confirmed and the repercussions of restrictions on the budget become evident in the short term, including a decline in consumption and public investment.
According to the World Bank, economic growth in Tunisia is likely to rise to 3.1 percent if the pace of recovery before the Russian war continues. But this optimistic scenario, however, remains less likely than the first, given that the impact of the recovery is likely to fade for the second half of 2021, in light of the weak self-resources to finance the budget, in addition to the high cost of food and energy during the past months and its direct impact on the state's resources and the support system for a number of consumer products.
The World Bank expected that rising prices in international markets would increase Tunisia's budget deficit. The Bank also expected deterioration in the trade balance as well as the balance of payments due to the increase in the value of imports, which will be commensurate with the increase recorded at the level of world prices.
Source (Al-Sharq Al-Awsat Newspaper, Edited)
