IMF mission report forecasts “ solid and sustainable economic growth” for Tunisia in 2008-2009
Tunis , June 24, 2008 (TunisiaOnline)--A recent International Monetary Fund mission to Tunis has revealed that prospects for Tunisia 's economy are bright in spite of the challenge posed by the recent hike of energy and basic food prices throughout the world.
Tunisia's economic solid and sustainable growth is expected to continue throughout 2008 and 2009 says the report, noting that the authorities are set to maintain the purchasing power of Tunisians by maintaining subsidies on food and petrol prices.
The Head of the IMF mission, Mr Abdelhak Senhadji also said that “Good economic management and social policy are continuing to yield results , as evidenced by accelerated growth and improved social indicators , and a stable macroeconomic position”, after meetings with Tunisian authorities.
The IMF expects that the Tunisian economy will continue to grow by 5,5% in 2008 and 5,9% in 2009, making it possible to reduce unemployment .
Noting that the Tunisian Central Bank's policies have managed to reduce inflation to 3,1%, the IMF report notes that the medium term outlook for the Tunisian economy is favourable even if “the major challenge at present is to limit the impact on inflation and growth from rising world prices of food and petroleum products and global financial turbulence in order to further reduce the unemployment rate which is still relatively high, particularly among graduates”.
The Fund does not advise against state subsidies on basic food and energy prices, judging that the country is currently able to afford them, and that “the fiscal deficit should be kept within the budget limit of 3%”.
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