TUNIS: The European Bank for Reconstruction and Development (EBRD) said on Tuesday it expects the Tunisian economy to grow by 2.7 percent of GDP this year, but recovery will depend on a COVID-19 vaccination rollout, economic reforms and the vital tourism sector.
Tunisia had forecast growth of 3.9 percent this year after the economy shrank by 8.8 percent in 2020, but the rapid spread of the coronavirus is pointing to another bad tourist season as foreigners desert the country’s beaches.
Tunisia’s gross domestic product (GDP) shrank 3 percent in the first quarter of 2021 from a year ago.
“The strength of the recovery will also depend on the pace of vaccination against COVID-19, allowing the reopening of the economy, including the tourism sector,” the bank said.
It added that a strong and sustainable recovery will depend on economic reform, however, while fiscal tightening is expected to rein in the strength of any upswing.
Tunisia, which posted a fiscal deficit of 11.4 percent of output last year, has started talks with the International Monetary Fund on a package of financial assistance.
EBRD sees Tunisia economy growing 2.7% this year, recovery depends on tourism
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EBRD sees Tunisia economy growing 2.7% this year, recovery depends on tourism
- Tunisia’s gross domestic product (GDP) shrank 3 percent in the first quarter of 2021 from a year ago
