São Paulo – Tunisia should grow by a higher rate in 2014 than this year, the country’s prime-minister Ali Larayedh said last Wednesday (25th) at the Tunisian parliament. As per this Thursday’s (26th) edition of Qatari newspaper The Peninsula, Larayedh estimated that that Tunisia’s Gross Domestic Product (GDP) should be up 4% next year. He also said the deficit should decrease and the federal budget should go up. His term in office ends on January 14th.
“In 2013, the economy has performed well, but did not achieve the expected results,” the prime-minister said, referring to the political tension and security threats that prevented the country from growing further. According to the Tunisian leader, in 2014 the GDP will be up 4%, as against a 2.8% rate expected for this year.
By the end of 2014, Tunisia should have a 5.7% current account deficit. This year, a 6.8% deficit is expected. Larayedh has said the 2014 federal budget should be US$ 15 billion, up 2.8% from 2013.
Although Tunisia’s GDP is growing, it should not suffice to address one of the main issues facing the country: unemployment. In early December, the World Bank said the North African country needs to grow by at least 4.5% a year in order to create jobs and reduce unemployment rates, which stands at 15% and twice as much among college-educated professionals.
High unemployment rates were one of the reasons for the uprising which erupted in late 2010 and led to the ousting of then-president Zine El Abidine Ben Ali. Larayedh was inaugurated in February this year, but failed to relieve tensions in his country. He was called upon to step down in July, but did not, and postponed his exit to early 2014. On January 14th, the Tunisian minister of Industry, Medi Jomaa, will be inaugurated as the new prime minister.
*Translated by Gabriel Pomerancblum
