IMF Staff Statement on Tunisia
IMF News, March 30, 2022
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- IMF Staff Statement on Tunisia
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Bibliographic details
- Published: March 30, 2022
Overview
- Press Release No. 22/98
- Date: March 30, 2022
- Mission dates: March 23–25, 2022
- Note: End-of-Mission press releases convey preliminary findings after a visit to a country. The views expressed are those of IMF staff and do not necessarily represent the views of the IMF’s Executive Board. This mission will not result in a Board discussion.
Context and challenges identified by the mission
- Discussions covered the Tunisian authorities’ reform program and the impact of the war in Ukraine on Tunisia as it emerges from the pandemic.
- Tunisia faces major structural challenges that result in:
- deep macroeconomic disequilibria,
- weak growth despite strong potential,
- a high unemployment rate,
- weak investment,
- social inequality.
- The impact of the pandemic and the war in Ukraine are additional challenges compounding these structural problems.
Authorities’ program objectives (as described by the mission)
- Short-term: mitigate the impact of the war in Ukraine.
- Medium-term: assure stronger, durable inclusive growth and social protection.
- Program seeks to:
- create fiscal space for public investment,
- increase social protection.
IMF assessment and policy recommendations
- The IMF considers that a conscientious reduction of the fiscal deficit is necessary to restore macroeconomic stability. Recommended means include:
- equitable taxation reform,
- strict control over the public sector wage bill,
- better targeted subsidies,
- deep reforms of state-owned enterprises (to restore macroeconomic stability, improve efficiency of state-owned enterprises, and strengthen competitiveness).
- Initiatives to enhance competition and the business climate are critical to unlock potential growth and job creation.
Mission engagement and stance
- The mission had constructive discussions with Tunisian officials, including:
- the Head of Government;
- the Ministers of Finance, of Economy and Planning, of Social Affairs, of Industry, Mining and Energy, and of Commerce;
- the Governor of the Central Bank of Tunisia.
- The IMF reiterates support to Tunisia, noting prior support during the Covid-19 pandemic and ongoing technical progress in discussions with the Tunisian authorities.
Media contact
- IMF Communications Department, MEDIA RELATIONS
- PRESS OFFICER: Randa Elnagar
- Phone: +1 202 623-7100
- Email: MEDIA@IMF.org
- Twitter: @IMFSpokesperson
IMF Staff Statement on Tunisia, Press Release No. 22/98, March 30, 2022.