Tunisia’s GDP growth is expected to fall from 3.1% in 2021 to 2.5% in 2022 and 3.2% in 2023, according to the African Economic Outlook 2022 report, presented on Wednesday in Accra, the capital of Ghana, during the Annual Meetings of the AfDB Group (23-27 May 2022).
Inflation is expected to be higher in 2022, due to the Russian-Ukrainian conflict, which has caused oil and food prices to soar on world markets, reads a report published by a local News agency. However, it is expected to decrease in 2023, thanks to a prudent monetary policy and the easing of external inflationary pressures, according to the report.
The projections also show “a deterioration in the fiscal and current account deficits in 2022, before improving in 2023. However, this outlook could worsen due to the high risk of debt distress, which could have a negative impact on capital inflows and access to external financing,” according to the African Development Bank’s flagship publication, released on May 24, 2022.
In addition, “political instability and the slow pace of reforms are making donors reluctant to support the country financially.”…. “The recovery could also be slowed down by social tensions caused by rising prices in a difficult economic context for households, by a restrictive fiscal policy, further penalizing public investments, by a loss of confidence of private investors, or by new variants of COVID-19. Restoring sustainable public finances, prudent debt management, and the availability of basic foodstuffs at affordable prices will be necessary to mitigate the risks.*
TunisianMonitorOnline
