## IMF Staff Concludes Visit to Tunisia

_IMF News, July 17, 2019_

## Source details

**Canonical URL:** [IMF Staff Concludes Visit to Tunisia](https://www.imf.org/en/news/articles/2019/07/17/pr19286-tunisia-imf-staff-concludes-visit)

## Other formats

- [Markdown version](/en/news/articles/2019/07/17/pr19286-tunisia-imf-staff-concludes-visit/index.md)
- [Structured JSON version](/en/news/articles/2019/07/17/pr19286-tunisia-imf-staff-concludes-visit/index.json)
- [Bundle manifest](/en/news/articles/2019/07/17/pr19286-tunisia-imf-staff-concludes-visit/bundle-manifest.json)

## Bibliographic details
- Published: July 17, 2019

---

### Mission details
- Press Release No. 19/286
- July 17, 2019
- An IMF staff team led by Björn Rother visited Tunis from July 11–17, 2019.
- End-of-Mission note: "This mission will not result in a Board discussion."
- IMF Communications Department — MEDIA RELATIONS. PRESS OFFICER: Wafa Amr. Phone: +1 202 623-7100 Email: MEDIA@IMF.org

### Key findings on macroeconomic developments
- Tight monetary and fiscal policies during the first half of 2019 have reduced inflation and laid the foundation for a second year of budget deficit reduction.
- Inflation: 6.8 percent in June from a peak of 7.7 percent a year earlier.
- Lower refinancing as of end-June contributed to disinflationary outcomes.
- Public debt reached 77 percent of GDP at the end of 2018.

### Economic outlook and risks
- Growth forecast: "Growth will likely be limited to at most 2 percent" for 2019.
- Downside factors highlighted:
  - Disappointing performance of industry in recent months.
  - Recent appreciation of the dinar.
  - Increase in oil prices.
  - Slower growth in Tunisia’s main trading partners.
- Offsetting factor: "More favorable than expected performance of the tourism sector."
- These risks are "likely to weigh on the fiscal and external current accounts."

### Policy priorities and recommendations
- Near-term policy focus:
  - Continue reducing fiscal and external deficits.
  - Lower inflation further.
  - Strengthen the social safety net for low-income households.
- Fiscal consolidation specifics:
  - Meeting the budget deficit target of 3.9 percent of GDP for 2019 is described as "critical to slow down the accumulation of public debt."
  - Required actions include continued strong performance on tax and tax arrears collection and additional measures to contain current expenditures.
  - Suggested containment measures: continued moderation of the wage bill and energy subsidies, noting the constraint of higher international oil prices.
- Social protection:
  - Staff supports the authorities’ ongoing efforts to strengthen social safety nets especially for low-income households.
- Monetary and exchange rate policy:
  - "Monetary policy should remain geared towards reducing inflation that erodes the purchasing power of Tunisians."
  - "Exchange rate flexibility can support an improvement in the current account and international reserves."

### Stakeholder engagement
- The IMF team met with:
  - Minister of Finance Ridha Chalghoum
  - Minister of Development, Investment and International Cooperation Zied Laâdhari
  - Minister of Major Reforms Taoufik Rajhi
  - Central Bank Governor Marouane El Abassi
  - Representatives of the labor and employers’ unions, the private sector, civil society, and the diplomatic community.
- The mission "would like to thank the authorities and all those with whom it met for their warm welcome and constructive discussions."

*IMF Staff Concludes Visit to Tunisia — Press Release No. 19/286, July 17, 2019*

---


## References

- [Tunisia and the IMF](http://www.imf.org/external/country/TUN/index.htm)
- [Press Releases](https://www.imf.org/en/news/searchnews)
- [PRESS CENTER](http://presscenter.imf.org/)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2019/07/17/pr19286-tunisia-imf-staff-concludes-visit_