Key Questions on Tunisia
Last Updated: April 10, 2020
Read the key questions regarding the IMF agreement with Tunisia
What is the IMF’s assessment of the impact of covid-19 on Tunisia?
Tunisia’s economy has been severely hit by the Covid-19 outbreak. Growth in 2020 is expected to drop to -4.3 percent, the lowest level since Tunisia’s independence in 1956. The authorities have taken pro-active measures to contain the spread of Coronavirus by closing Tunisia’s borders, isolating affected individuals, and imposing confinement and a night curfew. They also acted quickly to limit the social and economic impact of the pandemic on lower-income households and small- and medium-sized firms through a series of emergency response measures.
The large tourism sector, which represents 7 percent of GDP, and exporters, who supply the European automotive and textile industries, have already felt a strong negative impact. More stress will occur, as the crisis spreads through the domestic economy. Households will have to draw down savings and cut consumption. Unemployment, already at 15 percent, will rise further, incomes will fall, and import prices will increase. Many businesses are likely to face cash flow shortages because of temporary closures and lower revenues from consumption and exports.
