Tunisia’s increasing reliance on domestic funding and high global commodity prices have led to rising inflation, Fitch Ratings said as it commented on its recent rating action on Tunisia.
“We expect inflation to average about 8% in 2022, with part of the price increase absorbed by government subsidies,” Fitch pointed out.
At the same time, it said it expected pressure to build on external reserves with rising import costs and limited external borrowing, “given the modest economic recovery and the negative impact it would have on government funding costs.”
