The Tunisian economy has been through a lot of turbulence in recent years. At the end of June 2024, several key indicators showed signs of recovery.
Indeed, the economic reforms proposed in Tunisia raise both hopes and challenges. They offer encouraging prospects in the medium and long term, with the potential to stimulate economic growth, create jobs and strengthen the competitiveness of the Tunisian economy.
However, effective implementation of these reforms will require strong political commitment, coordination between economic and social actors, and particular attention to promoting social inclusion and managing external risks.
By addressing these challenges with prudence and determination, Tunisia could chart a course towards a more dynamic and sustainable economic future.
Key challenges, according to Boudriga
Abdelkader Boudriga, Chairman of the Cercle des Financiers Tunisiens, sounded the alarm on the country’s economic situation during an appearance on Radio Express FM’s Expresso program.
According to him, the Tunisian economy is facing a number of major challenges: an insufficient growth rate, a lack of decent jobs and a regulatory framework that is not conducive to entrepreneurship. He stressed the crucial importance of reliable economic data in order to develop effective strategies.
He regretted the lack of accurate growth statistics for the third quarter of 2024, pointing out that current data does not reflect the reality on the ground.
Boudriga also highlighted the potential of the impact economy to contribute to more equitable and sustainable development. He called for greater support for entrepreneurship, in particular by revising the Foreign Exchange Code to create a more favorable environment for start-ups and young entrepreneurs.
Finally, the Chairman of the Cercle des Financiers warned of the ageing of the Tunisian population and the need to create quality jobs for the younger generations. The current growth rate of 2.5% to 3% was insufficient to meet this challenge.
An improvement, according to Fitch
On September 16, Fitch upgraded Tunisia’s credit rating from ‘CCC-‘ to ‘CCC+’, marking a decisive turning point in the international assessment of the country’s financial situation.
This upgrade, while modest, has significant implications for the Tunisian economy. Fitch justifies the upgrade by its increased confidence in the Tunisian government’s ability to meet its substantial financing needs. Tunisia has strengthened its external position, allowing it to maintain sufficient international reserves to meet its external payments and debt obligations.
Despite ongoing challenges, including limited access to external financing and uncertainty about the ability of local banks to absorb growing public debt, Fitch believes that Tunisia is better positioned to meet its financial obligations in the short and medium term.
This renewed confidence is based on an improvement in Tunisia’s foreign exchange reserves, supported by a lower current account deficit and stable external financial commitments, even in the absence of an International Monetary Fund (IMF) program.
