Tunisia: 2021 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Tunisia
IMF Staff Country Reports, February 26, 2021
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- Tunisia: 2021 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Tunisia
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Bibliographic details
- Published: February 26, 2021
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513570600.002
Key findings on economic impact and outlook
- The pandemic aggravated Tunisia’s long-standing vulnerabilities stemming from persistent fiscal and external imbalances, rising debt, and contingent liabilities from inefficient state-owned enterprises.
- The crisis is expected to induce the largest contraction in real GDP since independence.
- Staff expects GDP growth to rebound modestly in 2021, but it could take years before activity returns to pre-crisis levels, especially if large imbalances were not addressed and key reforms delayed.
- Downside risks dominate the outlook.
- Recent protests highlight elevated social tensions, aggravated by Covid-19 restrictions, and particularly among the youth.
Fiscal and policy developments
- The authorities’ targeted response together with higher outlays on wages widened the fiscal deficit.
- A second Covid-19 wave is underway.
- The authorities are securing 500,000 doses to start a first campaign of vaccinations in February and are aiming to secure more doses to vaccinate half of the population starting in April–May.
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