Public finances are under pressure and prices are rising in Tunisia presenting big economic challenges To President Kais Saied as is plans to fix the policy system in constitutional referendum on Monday.
Here are some of Problems affecting economythat was hit especially hard COVID-19 pandemic for adoption on tourism:
government finance
strains in Tunisia public Finance led to the delay in State salaries and difficulties in Pay for wheat imports.
The budget The deficit is expected to widen to 9.7% of This country’s GDP year From the previous forecast 6.7%, central bank Governor Marwan Abbasi said. This is due to the strongest dollar and sharp elevations in Grain and energy prices – Methods -on Effects of The Ukraine war, which Abbasi said brought in an additional $1.6 billion of financing needs.
State finances already stretched by one of The highest public Sector salary bills in The world Compared to size of The economyheavy spending on Subsidizing energy and imported food.
Weakest Tunisian Dinar added to pressure. The currency fell to 3.18 dinars dollar in 12 months through July 14, 13.2% decline.
The government Hoping to get a $4 billion IMF loan in exchange for freeze public wages and employment sector and cutting Food and energy support. but the powerful Employment of the Tunisian General Labor Union union Opposing reforms, a big obstacle.
Debt is seen as more full of dangers
The International Monetary Fund said last year that Tunisia public debt It will become unsustainable unless reforms are enacted with Wide support.
Distinguished Tunisia public debt It will reach approximately 114.14 billion dinars ($40 billion) by the end of of 2022, Accounting for 82.6% of GDP, according to the state 2022 budgetan increase of 81% in 2021.
Reflects investor concern, spreads on Tunisian public debt or discerning investors demand To keep it instead of US super safe government Bonds – are now some of The highest in The world.
They have ascended to over 2800 base pointsnearly three times Level 1000 which is set normally off The warning Siren.
Along with Ukraine and El Salvador, Tunisia on Morgan Stanley’s Top Three list of Most likely defaulters.
About 3 billion dollars worth of Tunisian foreign currency debt he is set to mature between 2024 and 2027.
frozen out of international markets government She hopes the IMF financing agreement will open up more broadly financial support.
high inflation
Annual inflation in Tunisia rate she has hit a series of record heights of this yeartouch 8.2% in Jun.
The government Gasoline prices raised three times this is year. It now costs 100 dinars to fill a typical four-door saloon, compared to 93 dinars in start of The year.
In May, farmers in And I needed several areas at the top cost of animal feed, and government She said she would raise prices of Certain foods including milk, eggs and poultry.
Tunisia is particularly vulnerable to grain supply disruptions caused Ukraine war, imported 60% of its soft wheat and 66%. of Its barley is from Russia and Ukraine, the World Bank says.
In June, the World Bank approved a $130 million loan for Imports of wheat and barley.
poverty
hardship on The rise.
in an interview with local newspaper in May the social affairs minister He said the number of families in need grown from 310,000 in 2010 – year The pro-democracy uprising began – to more From 960,000 today. Nearly 6 million Tunisians, or half The populationbelow the poverty line, is added.
The unemployment rate rose to 18.4%. in 2021, World Bank says. It is especially high among young people, women And the in the West of Country.
