Tunisian authorities expect the national economy to contract by almost 7 percent in 2020 due to the coronavirus crisis, Prime Minister Elyes Fakhfakh said on Thursday
CAIRO (Pakistan Point News / Sputnik - 26th June, 2020) Tunisian authorities expect the national economy to contract by almost 7 percent in 2020 due to the coronavirus crisis, Prime Minister Elyes Fakhfakh said on Thursday.
In April, the International Monetary Fund (IMF) warned that Tunisia is on the verge of the strongest recession since acquiring independence in 1956.
"According to the estimates of the World Bank, the IMF and other partners of Tunisia, the economic growth in 2020 may reach -6.8 percent. This indicator has not been in the negative territory since 2011 [back then, the economic growth totaled almost -2 percent], and will lead to the loss of jobs for 130,000 Tunisians," Fakhfakh said in a report to the parliament on his cabinet's first 100 days in office.
According to the prime minister, the state debt has reached "frightening" proportions and totaled 92 billion dinars ($32 billion), which is equal to 84 percent of the domestic national product of Tunisia. Sixty percent of the debt is owed to foreign partners, Fakhfakh noted.
The authorities, the prime minister went on, are seeking to avoid a further increase in debt, which has spiked due to collapse of the national currency and is already threatening "national sovereignty."
Due to the negative economic growth, the state budget will have a deficit of 5 billion dinars. Fakhfakh warned that most government organizations will face bankruptcy.
In a letter to the IMF, the Tunisian authorities earlier said they expect $1.4 billion losses in the tourism sector due to the pandemic and border closures. On April 10, the IMF approved a $745 million emergency assistance loan to help the country tackle the coronavirus crisis.
