Tunisia attempts to reduce economic shortage to 5.5 percent next year

(MENAFN) Tunisia forecasts to cut its economic shortage to 5.5 percent in 2023 from an estimate of 7.7 percent this year, triggered by austerity actions that might open the way for a final agreement with the International Monetary Fund on a rescue package.

The nation has been in vital need of global support for months as it faces with a disaster in public economics that has surged worries it could regulate on debt and has contributed to deficiencies of food and fuel, as shown by government critics.

The Economy Ministry stated on Friday that financial expansion for 2023 might be 1.8 percent, in comparison with 2.5 percent projected in 2022.

The nation’s external borrowing needs next year is going to surge by 34 percent to 16 billion dinars (USD5.2 billion) whereas public debt is estimated to surge by 44.4 percent to 20.7 billion dinars.

Tunisia has amounted to a staff-level deal with the IMF for a USD1.9 billion rescue package in exchange for unpopular reforms, such as reducing food and energy subsidies, as well as overhauling public firms. It targets to sign a final agreement in weeks.

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