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HomeNewsTunisia lowers its growth forecast to 2.8% for 2014

Tunisia lowers its growth forecast to 2.8% for 2014

The Tunisian government has reduced its economic growth forecast to 2.8% for this year, which is consistent with those established by the International Monetary Fund, Minister of Economy and Finance Hakim Ben Hammouda said after a meeting Monday with a delegation of the International Monetary Fund (IMF), Reuters reported.

The government had previously predicted a 4% growth.

The government still faces the challenge of reducing a serious budget deficit deterioration through seeking foreign financing and cutting subsidies and public spending as required by the international donors.

“We see a growth of 2.8% due to the global economic situation and the context of the country’s transition,” the minister said, adding that “we must be realistic.”

Tunisia’s economy grew by 2.6 percent last year.

The IMF, which agreed at the beginning of last year to give Tunisia a loan of 1.7 billion over several installments, expects the budget deficit to reach about 8% of gross domestic product this year, compared to 8.4% last year.


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