Tunisia needs political consensus for economic recovery - PM
The budget allocated to equalisation should reach nearly 5,500 million dinars in 2013
Click here to add Central Bank of Tunisia as an alert
Disable alert for Central Bank of Tunisia,
Click here to add Hamadi Jebali as an alert
Disable alert for Hamadi Jebali,
Click here to add International Monetary Fund as an alert
Disable alert for International Monetary Fund,
Click here to add Ridha Saidi as an alert
Disable alert for Ridha Saidi
The recovery of the Tunisian economy hinges on consensus among different political parties, which alone is able to restore security and economic and social stability, outgoing Prime Minister Hamadi Jebali said after a Cabinet meeting held Friday in Dar Dhiafa, Carthage.
The meeting, which brought together the Governor of the Central Bank of Tunisia, the Ministers of Finance, Investment and International Co-operation and the Minister in charge of Economic and Social Issues, focused on the economic and social situation in the country.
With regard to Tunisia's co-operation with the International Monetary Fund (IMF), Mr. Jebali said "this institution has not imposed on the country additional conditions above what the country has assigned for itself, particularly in terms of reform of the financial and banking sector, wages and the equalisation system."
He warned against "politicising this issue not to mislead the public opinion."
"Many parties have contributed to the spread of a bad image of the social and political situation which led to the deterioration of Tunisia's economic situation," added Mr. Jebali.
Among the economic sectors that have been affected, he cited tourism and investment.
For his part, Mr. Ridha Saidi, Minister in charge of Economic and Social Issues stated that "the year 2012 was marked by an economic recovery interrupted by political differences."
Indeed, some sectors recovered in 2012, despite the social tension recorded in that period, he noted.
Saidi added that the rate of unemployment reached 16.7% in 2012 against 18.9% in 2011.
Regarding the outlook of the economy, he said a growth rate of 4.5% is expected in 2013.
Budget deficit will be around 5.9% in 2009, against 6.6% in 2012, added Mr. Saidi.
He called, in this context, to take all necessary measures to control the general balance and reduce the budget deficit.
However, the budget allocated to equalisation should reach nearly 5,500 million dinars in 2013, he specified (4,200 million dinars planned under state budget).
With regard to the repayment capacity of Tunisia, Mr. Saidi stated that the country is able to meet its financial commitments towards its international partners.
On the lowering of Tunisia's debt rating, the minister explained this decline by the political crisis faced by the country and the delay in the formation of a new government.
Moody's, Thursday, downgraded Tunisia's debt rating one notch to "Ba1" from "Baa3," citing the country's grave political crisis and its deteriorating credit fundamentals.
Moody's also announced that it put the rating on review for a possible further downgrade.
- Jordan secures EU finance for socioeconomic and environmental programs
- US, EU protectionist policies may be a blessing in disguise for GCC suppliers
- Dubai to Doha: How far can you stretch your dirham?
- Tunisia 2020 investment conference: 145 mega projects on offer
- GCC tax on expats' income and remittances would be highly regressive: IMF
- (Re)-Starting Up: Tunisia 'ripe' for post-Arab Spring economic recovery
- Ready to borrow more than a billion: Tunisia's PM says economic woos could become "catastrophic"
- Tunisian political parties in talks to announce new PM
- Tunisian PM off to shaky start with failure to form cabinet within expected timeframe
- Tunisian army take control on Carthage Palace