Tunisia Economic Between the Challenges and Outcomes

REVOLUTION 122_1300271040a

Introduction

Tunisia policy makers should find opportunity to create an innovative economic strategy to overcome challenges which inherited in the economy and still has effect even after 2011

Tunisia needs to develop a sustainable process of job creation that relies on a competitive private sector, and the government must remove barriers to entrepreneurship and investment. Although the country has achieved relatively high economic growth but the contribution of private investment has remained low, high rates of youth unemployment, a large number of marginal jobs, increasing income inequality, and substantial regional disparities. The country must create real opportunities in agriculture, industry, and services to promote an intensive use of human capital. Other consideration which is Tax that burden the economy to be healthy for citizen to contribute base on real income capacity, finally public services should be improve (health and education).

The latest MENA Economic Monitor Report – spring 2016, expects Tunisia’s GDP growth to recover modestly to 1.8 % in 2016.

http://www.worldbank.org/en/country/tunisia/publication/economic-outlook-spring-2016

Outcomes of Economic Reform

From many indictors, Tunisian Economy is promising, IMF expected growth from 1.3% 2016 to 2.5 in 2017, also the successful of “Tunisia 2020 Conference” last November which mainly adopt the private-sector legislation give good indictor in macro and micro level which crucial for develop and enhance financial industry in Tunisia, however overall fiscal deficit expected to reduce.

The IMF team and the Tunisian government agree

  • Take urgent action is necessary to protect the health of public finances.
  • Increase public investment.
  • Accelerate progress with delayed structural reforms.
  • Implementing the fuel-price adjustment mechanism.

All these measures are critical to help Tunisian economy towards higher growth and more jobs, and to ensure that Tunisians continue recovering from 2011 Revolution and gain the reform outcomes.

Recommendations

  • Building a public administration for inclusive society.
  • Securing the economy stability
  • Reform public finance and promote financial program
  • Work harder to reduce unemployment
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