IMF report increases estimate of Tunisian growth rate by 2.7% in 2012
The IMF Executive Directors report noted that following Tunisia’s political transition, the country faces pressing economic and social challenges, including elevated unemployment and regional disparities. The generally positive report came as a welcome boost following the downgrading by Standard and Poors.
Source : https://www.marocafrik.com/english/IMF-report-incr...
They stressed the need to lay the ground for transforming the economy and promoting stronger and more inclusive growth. With the economic recovery facing risks from the unsettled political situation and the increasingly weak global environment, Directors saw a need to support economic activity while safeguarding macroeconomic stability.
They emphasized that fiscal consolidation should resume over the medium term to preserve fiscal and debt sustainability, and highlighted the need for a clear consolidation plan. They supported planned tax reforms to strengthen revenue and make the tax system more equitable and supportive of growth. They also emphasized the need to control medium-term public expenditures, including the wage bill, and to reform the subsidy and pension systems
The report says "signs of a rebound in economic activity occurred in early 2012: the first quarter, GDP grew in real terms by 4.8% ( year on year ) and tourism and foreign direct investment are increasing. A resumption of growth of real GDP would also be supported by a significant fiscal expansion ".
Achieving higher growth in the medium term is necessary to reduce the high unemployment, especially among youth, and to reduce social and regional disparities. The real growth should gradually reach 6% in 2017 in a baseline scenario assuming continued macroeconomic stability, improving governance and business climate, reforms of the labor market and education system to address the challenges of vocational training and the need to strengthen the financial sector.
They emphasized that fiscal consolidation should resume over the medium term to preserve fiscal and debt sustainability, and highlighted the need for a clear consolidation plan. They supported planned tax reforms to strengthen revenue and make the tax system more equitable and supportive of growth. They also emphasized the need to control medium-term public expenditures, including the wage bill, and to reform the subsidy and pension systems
The report says "signs of a rebound in economic activity occurred in early 2012: the first quarter, GDP grew in real terms by 4.8% ( year on year ) and tourism and foreign direct investment are increasing. A resumption of growth of real GDP would also be supported by a significant fiscal expansion ".
Achieving higher growth in the medium term is necessary to reduce the high unemployment, especially among youth, and to reduce social and regional disparities. The real growth should gradually reach 6% in 2017 in a baseline scenario assuming continued macroeconomic stability, improving governance and business climate, reforms of the labor market and education system to address the challenges of vocational training and the need to strengthen the financial sector.
Source : https://www.marocafrik.com/english/IMF-report-incr...