Tunisian government announced its fourth national subscription of the year, aiming to raise 700 million dinars (approximately $225.33 million) to finance the current year’s budget. This move comes amid difficulties in securing foreign loans, highlighting the country’s ongoing financial challenges.
So far, the government has successfully raised over $800 million through three previous subscriptions this year. These efforts are part of Tunisia’s broader strategy to manage its financial situation amidst a challenging economic environment.
Last month, the government stated that the financial deficit for 2023 is expected to rise from the previously projected 5.2% to 7.7% of the Gross Domestic Product (GDP). This significant increase underscores the severity of Tunisia’s fiscal challenges.
Finance Minister Siham Boughdiri noted that Tunisia has so far managed to repay 81% of its external debts, totaling 20.8 billion dinars for the year 2023. Despite immense pressure on public finances, the country is committed to meeting its obligations, Boughdiri added.
Tunisia’s approach to addressing its financial issues through national subscriptions is a critical aspect of its economic strategy. These efforts reflect the government’s dedication to sustaining financial stability while facing limited access to external funding. The situation in Tunisia is indicative of the broader economic challenges faced by many countries in the region, where balancing budgetary needs with limited resources and external debt obligations is a constant struggle.
The Tunisian government’s proactive measures in managing its finances, including the latest subscription, are essential in navigating the complex economic landscape. This situation underscores the importance of robust financial strategies and the need for continued efforts to ensure economic stability and growth in Tunisia.
The Tunisian economy in 2023 is marked by moderate growth amid various challenges. The country’s real GDP is projected to grow by 1.9%, driven primarily by manufacturing and services. However, this growth is tempered by the recession in many European states, which impacts Tunisia due to its economic connections with Europe. Inflation in Tunisia is expected to rise to 9.2% in 2023 before falling to 6.8% in 2024, assuming prudent monetary policy and reduced external inflationary pressures.
Despite some positive developments, including improved trade terms and a resurgence in tourism, the GDP growth forecast for 2023 stands at around 1.2%, which is modest compared to regional counterparts and only half the growth rate of 2022. This growth rate for 2023 is subject to significant variation depending on the progress of financing conditions and structural reforms. The World Bank has recently lowered its growth forecast for Tunisia to 1.2% from an earlier projection of 2.3% due to uncertain prospects regarding debt financing and challenging conditions.
