Outgoing IMF envoy criticizes Tunisia’s economic plans

Last updated on January 19th, 2022 at 07:46 am

It is not more hidden that Tunisia is not just suffering politically but having a toss on economic grounds as well.

The International Monetary Fund highlighted the weak economic planning of the country recently saying that the African nation needs deep economic reforms to sustain things further.

The concern was generated by the outgoing IMF country chief Jerome Vacher for Tunisia who said that the north African state needs “deep reforms” including a drastic reduction in the vast public wage bill. With this, the IMF official has reached the end of a three-year term.

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Jerome Vacher also stated that the ongoing Covid pandemic has resulted in the deepest recession for the country since Tunisia’s independence in 1956.“The country had pre-existing problems, in particular budget deficits and public debt, which have worsened in recent years.”

He also explained another cause for such a poor economic return is that the deficit has been persistent since the previous years and above all other things, growth has also weakened and is now largely insufficient.

As per a report, the growth dropped by almost 9% of GDP in 2020. By 2021, it only recovered by 3%. The rate of unemployment is also extremely high in the country with the number touching over 18 percent. The IMF envy hence stressed that the nation desperately needs deep structural economic reforms which are not happening at the moment. He also stressed that the country’s economy also requires a balanced macroeconomic structure.