Tunisia: 2017 Article IV Consultation and Second Review Under the Extended Fund Facility, and Request for Waivers of Nonobservance of Performance Criteria, and Rephasing of Access

IMF Staff Country Reports, June 12, 2018

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Canonical URL: Tunisia: 2017 Article IV Consultation and Second Review Under the Extended Fund Facility, and Request for Waivers of Nonobservance of Performance Criteria, and Rephasing of Access

Economic growth almost doubled to 1.9 percent in 2017 as confidence strengthened on the back of improved security and the unity government’s early progress with policy and reform implementation.
Investment and exports remained sluggish in 2017.
Growth is expected to reach 2.4 percent in 2018, helped by a good agricultural season and a pickup in manufacturing and tourism.
The unemployment rate remains high at 15 percent.
Trade data for early 2018 show an improvement in export performance, while import growth is slowing.
The favorable trade trend is expected to continue throughout the remainder of 2018, supported by a more favorable real exchange rate.

2017 growth: 1.9 percent.
2018 projected growth: 2.4 percent.
Drivers of improvement: improved security; unity government’s early progress with policy and reform implementation; good agricultural season; pickup in manufacturing and tourism.
Constraints noted: sluggish investment and exports in 2017.

Unemployment rate: 15 percent.
Early-2018 trade developments: improvement in export performance; slowing import growth.
Exchange rate dynamics: a more favorable real exchange rate is cited as supporting improved trade performance.

Subjects: Anti-money laundering and combating the financing of terrorism (AML/CFT), Banking, Credit, Crime, External debt, Inflation, Money, National accounts, Prices, Public debt.
Keywords: Anti-money laundering and combating the financing of terrorism (AML/CFT), authorities' resolve, authority, CR, Credit, dinar depreciation, EFF arrangement, Europe, Global, Inflation, ISCR, Middle East, Tunisian authorities, unity government.