(3minutes read)
· Tunisian Prime Minister Hichem Mechichi said that the country’s budget deficit in 2020 reached record levels at around 14% of the GDP
· Experts point out that the current problem is mainly on account of the accumulation of several years of economic, social and political instability, which was further affected by covid-19 pandemic
· According to the International Monetary Fund (IMF) Tunisia’s GDP would contract to -7% by 2020, mainly due to impact of covid-19 pandemic
Tunisian Prime Minister Hichem Mechichi said that the country’sbudget deficit in 2020 reached record levels at around 14% of the GDP. He called on the Central bank to take appropriate steps for limiting the vaulting deficit. Explaining to the public the state of the economy, the prime minister said that the country has never experienced such a deep economic and social crisis like the one it is undergoing now and said that the government would continue to hold consultations with the central bank to address the problem.
Experts point out that the current problem is mainly on account of the accumulation of several years of economic, social and political instability, which was further affected by covid-19 pandemic. According to the International Monetary Fund (IMF) Tunisia’s GDP would contract to -7% by 2020, mainly due to impact of covid-19 pandemic.
At the same time, The IMF’s four-year financing plan came to an end in the spring. Future prospects of getting another loan seem to be remote. Tunisia has relied heavily on International donors in recent years for supplementing its resources for routine expenditure. The central bank has called upon the government to restrict the spending and fiscal profligacy since the burden on the economy would be too heavy to bear
