The World Bank has just revised downwards its growth forecasts for Tunisia in 2022.
Previously forecast at 3.5%, the growth rate should stand at 3% in 2022, according to the latest projections of the World Bank. The national economy is expected to improve by 3.5% in 2023.
As an oil-importing country, Tunisia would observe an inflation of 6.5% in 2022 and 2023. The price increase is well above the inflationary average of 3.7% in 2022 and 2.5% in 2023 expected for MENA countries dependent on foreign supplies of black gold.
The World Bank points out that Tunisia “faces difficulties in maintaining its food subsidies,” before adding that “rising oil prices could, however, delay reforms, as subsidies could rise with global food and energy prices.” Furthermore, the report points out that Tunisia, Egypt and Jordan have a public debt of more than 80% of gross domestic product (GDP), putting their public finances under strain.
Tunisia’s forecasts are not the only ones to have been revised downwards. According to previous projections, the Moroccan economy is expected to grow by 3.2% in 2022. However, the World Bank’s new forecasts predict an improvement to 1.1% in 2022.
The kingdom’s economic growth rate is expected to jump to 4.3% in 2023. Inflation is expected to be 4% this year before falling to 1.8% in 2023.
The World Bank’s chief economist for the MENA region, Roberta Gatti, emphasized the need for countries in the region to invest in human capital by not only increasing but also improving investments in people to consolidate and advance equity and economic growth.
