São Paulo – Tunisia needs to create jobs, cut its budget deficit, and strengthen its banking sector in order to grow this year and in years to come. These were some of the suggestions set forth by delegates from the International Monetary Fund (IMF) on completing a visit to Tunisia last Wednesday (25th), by invitation of the local government. To the Fund’s delegates, the Arab country is implementing the planned measures and reforms, though at a slower rate than needed. <\/p>\n
“Immediate and urgent efforts are required to control external and budget deficits, reduce banking sector vulnerabilities, and generate more rapid and inclusive growth that can absorb unemployment while reducing social and economic disparities,” according to a press release issued by the Fund this Friday (27th).<\/p>\n
The Fund’s report acknowledges that by June, the North African country’s economic performance met the requirements of the IMF’s loan program. However, the report notes that recovery is taking place “at a more modest pace than anticipated.” <\/p>\n
The IMF notes that the political crisis has worsened after the first half of the year; that there have been threats to security; and that trade relations between Tunisia and its partners have deteriorated. The country has fiscal and external imbalances, and economic activity tends to decline in the short term. “Vigorous measures—including in the implementation of reforms—are essential, notwithstanding the constraints associated with political developments,” according to the press release.<\/p>\n
As a solution to the economic issues of Tunisia, the IMF suggests that local authorities should work to restore investor confidence, strengthen foreign exchange reserves, and implement reforms to create jobs, support private investment, strengthen the banking sector, and protect “the most vulnerable members of society.” Tunisia and the IMF will convene again in November this year.<\/p>\n
*Translated by Gabriel Pomerancblum<\/strong><\/p>\n