Tunisia’s economy will expand less quickly than hoped this year, with GDP growth now forecast at 3.6 percent compared to 4 percent previously, its finance minister said yesterday, putting partial blame on slower growth in Europe, reports The Gulf Daily News.
The budget deficit in the North African state is also projected to be wider than expected at 7.4 percent of GDP compared to the earlier estimate of 5.1pc, Elyess Fakhfakh said.
He added that he expected total debt to reach 48 percent of GDP this year from 46 percent previously expected and warned it could rise to 52 percent if salaries continue to go up. Fakhfakh cited slower economic growth in Europe and higher Tunisian government spending for the revised estimates. He did not mention the political crisis that has paralyzed the government in Tunis for a month.
Tunisia last month slid into its worst political crisis since the overthrow of president Zine El Abidine Ben Ali in January 2011. Government and opposition leaders are trying to find a negotiated way out of the deadlock.
“As a result of the continuing crisis in Europe, Tunisia has revised its growth forecast again from 4 percent to 3.6 percent,” the minister said.
The Islamist-led government cut its forecast for full-year 2013 growth in April to 4pc from 4.5 percent. Tunisia, which has signed a $1.7 billion standby loan agreement with the International Monetary Fund, is struggling with rising inflation and a large external deficit as well as its uncertain political outlook.