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Tunisia Foresees 2.5% Economic Growth in 2020

Tunisia Foresees 2.5% Economic Growth in 2020

Monday, 25 November, 2019 - 10:45
Shopkeepers wait for customers in front of a souvenir shop following Thomas Cook's collapse, in Hammamet, Tunisia, September 24, 2019. REUTERS/Zoubeir Souissi

Tunisian Finance Minister Ridha Chelghoum has expected economic growth of 2.5 percent in 2020.

In a parliamentary session allocated for discussing budget 2020, he said that several economic indicators might help elevate the growth rate that has been low throughout the past months of the current year.

The rural industry growth is anticipated to grow by around 5.2 percent instead of the current 1.7 percent. Also, the factory industries would recover and register a growth of 1.5 percent.

In the same context, Chelghoum noted that the services sector's performance has progressed. The Tunisian authorities are relying heavily on the phosphate's sector and key gas-field commencing operations.

This would boost the economy in Tunisia, given that it was fluctuating in 2019 and didn’t exceed 1.2 percent during the Q3 of this year.

Further, Tunisia expects the return of European countries’ demand for mechanical and electronic industries exports in addition to the fabrics sector.

The available given shows that the tourism sector is forecast to achieve a minimum of 9 million tourists, besides foreign cash incomes of circa TND5 billion (USD1.6 billion) – this has a positive impact on the country’s reserves of foreign currency.

In a related matter, the Central Bank of Tunisia said that foreign exchange reserves reached approximately TND18.9 billion (around USD6.3 billion).

Tunisia’s foreign currency reserves have risen to the equivalent of 106 days of imports compared to only 77 days a year ago.

Tourism revenues rose by 38 percent between 2018-2019, reaching TND5 billion in Nov. compared to TND3.5 billion at the same point in 2018.

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