(TAP) – The European Bank for Reconstruction and Development (EBRD) said on Wednesday that growth is expected to increase slightly in Tunisia in 2019 to reach 2.7%, due to delays in the implementation of structural reforms, mainly caused by political instability before the elections in the third quarter of 2019,
In its latest economic forecasts for the southern and eastern Mediterranean region for the years 2019-2020, the EBRD forecasts the restoration of foreign investor confidence in the reform momentum in Tunisia after the presidential and legislative elections in 2020, which will help reach a significant improvement in domestic and foreign investment and a bolster growth to above 4.0%.
The EBRD reminded that economic growth accelerated in Tunisia, reaching 2.5% in 2018, the fastest growth recorded in the country since 2012, which has benefited from the recovery of agriculture, thanks to favourable weather conditions and the contribution of the tourism and banking sectors.
The European Bank expects stronger growth in the southern and eastern Mediterranean region, in contrast to the general trend in the bank’s other regions of activity, which is an economic slowdown. It expects average growth in the five countries that make up this region, namely Egypt, Jordan, Lebanon, Morocco and Tunisia, to reach 4.6% this year and 5.1% in 2020, compared to 4.4% in 2018.
The bank said that tourism has continued to grow in most countries of the region, while Tunisia’s competitiveness has increased due to the devaluation of the currency. In addition, reforms have been implemented in Egypt, allowing the country to record higher growth rates than in the past decade.
The European Bank for Reconstruction and Development expects that economic activity in the region will benefit from the implementation of economic reforms and the improvement of the business climate to encourage domestic and foreign investment. Greater stability in the domestic political situation will support growth, which will, however, remain below pre-2011 levels.