Tunisian observers who spoke to “Sky News Arabia” expected the recent recovery in the country’s tourism sector to go a long way in achieving a relative breakthrough for the economy, and experts are counting on the success of the ongoing negotiations with the IMF to improve the conditions of the Tunisian economy over the coming period.
Tunisia’s efforts to emerge from the economic crisis
Tunisian political analyst Nizar Al-Jilidi affirms that his country has sought, through a set of urgent measures, to lift the blockade imposed on the economic sector, without submitting to the conditions imposed by the International Monetary Fund, which harm the citizen in a large extent. extent.
First: Tunisia has supported the tourism sector, which has been hit hard lately, due to the smear campaign that targeted the country following the fall from power of the Muslim Brotherhood.
Second: The success of the security confrontation with the terrorist organizations that have been active in recent years has resulted in the improvement of a safe environment to receive tourists from all countries of the world, which was evident in the figures announced by the Central Bank.
Third: Preparations at home are currently in full swing to ensure a strong tourist season in the summer, whether in terms of security preparations or service facilities at the highest level.
Fourth: Tunisia is also seeking to revitalize the industrial sector to increase domestic product and offset the budget deficit. Efforts are largely focused on the agricultural sector and phosphate production, as well as some other productive industries.
Use economic diplomacy
Al-Jalidi also points to the importance of regional and international efforts to attract investment and aid from neighboring and allied countries to support the Tunisian economy.
According to Jlidi, Tunisian diplomacy has succeeded in attracting international and regional support for the Tunisian economy, including support from Italy, Algeria and France as well.
What should the government do?
Tunisian economist Hassan Bali says the government must launch a set of measures to quickly rectify the situation, as follows:
Implement decisive reforms in vital sectors of the Tunisian economy. Implement correct and effective fiscal and monetary policies to reduce inflation and real economic growth. Search for solutions to strengthen confidence in the Tunisian economy and stimulate domestic and foreign investment. Government efforts cannot continue to retreat and evade their responsibilities in the face of this crisis, and we must act quickly and forcefully to overcome the challenges we face. The government must also work to develop a sustainable and effective economic plan and to carry out the reforms necessary to stimulate economic growth and attract investment.
In addition, attention should be paid to social affairs, improving the living conditions of citizens and improving state performance and reducing corruption.
Optimistic figures on the tourism sector
According to official figures released by the Central Bank of Tunisia, revenue from the tourism sector increased by 60.3%, reaching $389 million, as of April 20 last year.
Transfers from Tunisians working abroad also increased during the same period, by 7.3%, to 772 million dollars, against 690 million dollars in the same period last year.
The bank said net foreign exchange reserves fell to $7.29 billion as of April 28, from about $7.95 billion in the same period in 2022.
Tunisia is suffering from a worsening economic crisis with a sharp rise in the inflation rate and commodity prices, and it is seeking to reach an agreement with the International Monetary Fund to obtain financing of around 1.9 billion to support its budget, but the deal stalled due to the lack of agreement between the government and the fund on the required austerity measures.
At the end of March, the International Monetary Fund published a report entitled “Reforming energy subsidies for a more sustainable Tunisia”, in which it indicates that the pace of economic recovery in Tunisia has slowed in 2022, and at the same time the current pace counts and the public finance deficit has increased in light of rising global energy and food prices.
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