Tunisia expected to support recovery in GDP growth to 2% in 2020 (UN Report)
17/01/2020 18:31, TUNIS/Tunisia

(TAP) - A modest improvement in the balance-of-payments constraints in Tunisia is expected to support a recovery in GDP growth to 2.0 per cent in 2020, according to “World Economic Situation and Prospects 2020” Report, recently published by the United Nations.

"In 2019, tightening macroeconomic policies restrained growth in 2019," the report says, noting, however, that inflation declined amid improving balance-of-payments conditions.

According to recently published World Bank forecasts, Tunisia's gross domestic product (GDP) growth will reach 2.2% in 2020, thanks in particular to policy reforms and the resilience of tourism.

The GDP growth in North Africa is projected at 3.6 per cent in 2020 and 3.7 per cent in 2021, according to the report, notably,

The GDP growth in Egypt is projected at 5.8 per cent in 2020, Algeria at 2.3 per cent amid subdued private consumption and investment demand.

The recovery in oil and gas production has helped to stabilize growth in Libya.

The economy of Morocco is projected to grow by 3.0 per cent in 2020, supported by stable domestic demand.

In North Africa, a substantial slowdown in capital inflows may tighten balance-of-payments constraints in those countries with chronic current account deficits.

In North Africa, Egypt, Morocco and Tunisia have seen a modest improvement in fiscal positions and the average inflation is expected to remain below 10 per cent, the report points out.

In North Africa, youth unemployment rates exceed 25 per cent in Algeria, Egypt and Tunisia.

“In the current environment of protracted trade tensions and high policy uncertainty, the global growth outlook has weakened significantly. This threatens to undermine progress towards eradicating poverty, raising living standards, and creating a sufficient number of decent jobs. The broad-based growth slowdown in the world economy over the past year has been accompanied by a sharp slowdown in international trade flows and global manufacturing activity,” the report explains.

Against this backdrop, the United Nations estimates a modest acceleration, with average world gross product growth projected at 2.5 per cent in 2020 and 2.7 per cent in 2021.

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