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IMF: The economic situation in Tunisia is still fragile

July 18, 2014 at 3:20 pm

The IMF said that the economic situation in Tunisia is still fragile, because the growth is not high enough to make a significant change in the level of unemployment, especially among young people.

Inflation in Tunisia rose to 5.7 per cent at the end of last month, driven primarily by high food prices, compared to five per cent in March of this year.

In a statement obtained by the Anadolu news agency, the IMF said the expansion in economic activity is still modest.

The statement pointed out that the Tunisian external imbalances continues to widen, which puts pressure on the total foreign exchange reserves and the exchange rate continues to decline.

Yesterday, the mission held fruitful discussions with senior officials in government agencies and the Central Bank of Tunisia, and representatives of the banking sector and the private sector, trade unions and members of parliament and civil society.

The IMF is expected to record GDP growth in Tunisia of 2.8 per cent in 2014, as the performance of the agricultural sector is projected to compensate for the decline in tourism.

The Fund welcomed the Tunisian Central Bank’s decision to raise interest rates.