IMF Statement on Tunisia
IMF News, February 7, 2017
Source details
- Canonical URL
- IMF Statement on Tunisia
Other formats
Bibliographic details
- Published: February 7, 2017
Mission context and overview
- Press Release No. 17/39; statement issued February 7, 2017.
- End-of-Mission press release conveying preliminary findings after an IMF staff visit.
- Statement attributed to Mr. Björn Rother, IMF mission chief to Tunisia, following a staff visit under Tunisia’s four-year IMF Extended Fund Facility (EFF) arrangement approved in May 2016 (See Press Release 16/238).
- IMF Communications Department contact: PRESS OFFICER: Wafa A Amr; Phone: +1 202 623-7100; Email: MEDIA@IMF.org.
Economic outlook and key statistics
- Growth projections:
- Growth is expected to pick up to 2.5 percent in 2017 from 1.3 percent in 2016.
- Public debt and fiscal balance:
- Public debt reached more than 60 percent of GDP in 2016.
- Measures in the 2017 budget law will reduce the overall fiscal deficit modestly to 5.6 percent of GDP from an estimated 6 percent in 2016.
- The 2016 fiscal deficit outcome was higher than the initial target under the EFF due to lower growth and fiscal policy slippages.
- Other macro vulnerabilities:
- The public wage bill as a share of GDP is among the highest in the world.
- The external current account deficit remains elevated.
Main findings and assessments
- The Tunisian economy has remained resilient in a difficult domestic and international environment.
- Improved confidence following the successful “Tunisia 2020” conference in November and the adoption of crucial private-sector legislation supported the projected growth pickup.
- Significant macroeconomic challenges persist, requiring urgent action to protect public finances, increase public investment, and accelerate delayed structural reforms.
Authorities’ near-term priorities and IMF recommendations
- Mobilize more tax revenue in a fair and efficient way.
- Rationalize the public-sector wage bill to create more space for public investment.
- Implement the fuel-price adjustment mechanism.
- Put the social security system on a sustainable basis.
- Modernize the civil service (government has expressed resolve to move ahead).
- Ensure the health of public banks and state-owned enterprises.
- Establish an independent, high anti-corruption authority.
- Implement effective safety nets for the most vulnerable groups in society.
Engagement and next steps
- The IMF team and the government agree on the need for urgent action on fiscal policies and delayed reforms.
- The IMF team had constructive discussions with Head of Government Chahed, Minister of Finance Zribi, Minister of Investment Abdelkefi, Minister of Public Service Briki, and Central Bank Governor Ayari and their staff.
- The IMF team will remain engaged in a close policy dialogue on reducing fiscal and external imbalances and reinvigorating structural reforms.
IMF Statement on Tunisia (Press Release No. 17/39), February 7, 2017.