Washington, DC:
An International Monetary Fund (IMF) mission visiting Tunis March 23–25 had
constructive discussions on the Tunisian authorities’ reform program. The
discussions also covered the impact of the war in Ukraine, which poses
important challenges for the entire world and for Tunisia, right at the
moment that the country is emerging from the pandemic.
The mission wishes to thank the Head of Government; the Ministers of
Finance, of Economy and Planning, of Social Affairs, of Industry, Mining
and Energy, and of Commerce; and the Governor of the Central Bank of
Tunisia for the discussions.
Tunisia is facing major structural challenges that result in deep
macroeconomic disequilibria, a weak growth in spite of its strong
potential, a high unemployment rate, weak investment, and social
inequality. The impact of the pandemic and the war in Ukraine are now
adding to these structural challenges.
The authorities’ program aims to overcome these challenges in a durable and
equitable way. In the short term, it aims to mitigate the impact of the war
in Ukraine, while in the medium term, to assure stronger, durable inclusive
growth and social protection. In that context, the program seeks to create
fiscal space for public investment and increase social protection.
The IMF considers that a conscientious reduction of the fiscal deficit
through equitable taxation reform, strict control over the public sector
wage bill, better targeted subsidies, and deep reforms of state-owned
enterprises are necessary to restore macroeconomic stability, as well for
improving the efficiency of state-owned enterprises, and strengthening the
competitiveness of the Tunisian economy. Initiatives aimed at enhancing
competition and the business climate are also critical to unlock the
country’s potential growth and job creation.
The IMF supported Tunisia when it was coping with the Covid-19 pandemic in
a particularly difficult global environment. At this moment we continue to
stand by the side of the Tunisian authorities in their efforts to advance
economic and social reforms to the benefit of the population. In this
context, the mission has made further progress in the technical discussions
with the Tunisian authorities.
