IMF expects Tunisia to grow 2.8%

The International Monetary Fund (IMF) expects Tunisia’s growth to remain close to 2.8% in 2014, the same as the government’s revised figure. An IMF report said, “recovery of the Tunisian economy remains timid”, following a mission visit led by Amine Mati to Tunis from March 6 to 24. The current account deficit widened to 8.4% of GDP in 2013, as a result of weak exports of phosphates and low tourism revenues, coupled with weak external demand for Tunisian goods, which is expected to keep the deficit at 7.2% of GDP in 2014. Headline inflation declined to 5.5% at end-February 2014, and should remain stable following a slower rise in food prices and the implementation of a prudent monetary policy. Tunisian authorities reiterated their firm commitment to pursue economic reforms focused on more inclusive growth, the report said. IMF mission and the Tunisian authorities have reached an agreement on the third review under the Stand-By Arrangement (SBA). Subject to IMF Executive Board approval, the agreement would allow for the disbursement of US$225 Million (SDR 145 Million).