Tunisia’s Foreign Direct Investment Drops 14.2%

A man walks towards the Central Bank in Tunis (Reuters)
A man walks towards the Central Bank in Tunis (Reuters)
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Tunisia’s Foreign Direct Investment Drops 14.2%

A man walks towards the Central Bank in Tunis (Reuters)
A man walks towards the Central Bank in Tunis (Reuters)

Foreign direct investment (FDI) flows in Tunisia dropped 14.2 percent during the first half of 2020 compared to same period last year, and during the first three months of the current year the decline was 24.1 percent.

The foreign investments stood at about DT1.1 billion by the end of H1 2020, showing a downward trend over the past two years.

A significant decline was seen in FDI of service sector with 50.8 percent, and industry sector and energy with foreign direct investments dropped 13.3 percent and nine percent, respectively. However, agricultural investment saw an 18 percent increase.

The Tunisian Investment Authority announced that the local market had received 34 projects until the end of July, which means the number of projects has doubled compared to the same period last year, creating about 9,086 job opportunities.

The Tunisian economy shrank 21.6 percent by the end of the second quarter of 2020, which led the Tunisian Confederation of Industry, Trade and Handicrafts, to call upon the government to activate the state of emergency to salvage the economy.

The Tunisian Ministry of Finance had published statistical data on the results of the 2020 budget.

During H1 of 2020, direct tax revenues fell by 11.4 percent, corporate tax dropped 18.7 percent, and income performance also declined by 4.6 percent.

A decline in customs was recorded by 12.9 percent, performance on value added tax decreased 15.5 percent, and consumption declined by 8.3 percent.

As a result of the decline in the state's resources, the government resorted to borrowing, which it hopes would support its resources, amounting to about DT7.2 billion out of the DT11.2 billion allocated in the Finance Law for the year 2020.



Gold Edges Higher on Fiscal Debt Concerns while Traders await US Jobs Data

A salesman chooses gold chains for people buying gold at a gold shop in Bangkok's Chinatown, Thailand, June 8, 2016. REUTERS/Chaiwat Subprasom/File Photo
A salesman chooses gold chains for people buying gold at a gold shop in Bangkok's Chinatown, Thailand, June 8, 2016. REUTERS/Chaiwat Subprasom/File Photo
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Gold Edges Higher on Fiscal Debt Concerns while Traders await US Jobs Data

A salesman chooses gold chains for people buying gold at a gold shop in Bangkok's Chinatown, Thailand, June 8, 2016. REUTERS/Chaiwat Subprasom/File Photo
A salesman chooses gold chains for people buying gold at a gold shop in Bangkok's Chinatown, Thailand, June 8, 2016. REUTERS/Chaiwat Subprasom/File Photo

Gold prices edged higher on Wednesday as investors shifted their focus to the US fiscal situation and lingering uncertainty ahead of the July 9 deadline for US tariffs to take effect.

Spot gold was up 0.1% at $3,340.67 per ounce at 1157 GMT. US gold futures were steady at $3,351.10.

"The markets are again focused on the US fiscal situation ... and combined with uncertainty about the July 9 tariff deadline, these create fog for traders, who are directing flows towards safe-haven assets like gold," said Ricardo Evangelista, senior analyst at brokerage ActivTrades, Reuters reported.

US Senate Republicans narrowly passed President Donald Trump's tax and spending bill on Tuesday, a package cutting taxes, reducing social safety net programmes and boosting military spending while adding $3.3 trillion to the national debt.

"We still think debt level concerns, ongoing pressure on the Fed to adjust their rates and weaker US economic data will support the price of gold," said UBS commodity analyst Giovanni Staunovo.

Data on Tuesday showed US job openings increased unexpectedly in May, but a decline in hiring added to signs that the labor market has shifted into lower gear.

Fed Chair Jerome Powell reiterated that the US central bank plans to "wait and learn more" about the impact of tariffs on inflation before lowering interest rates, again setting aside Trump's demands for immediate and deep rate cuts.

The focus now shifts to US ADP employment data due later in the day, followed by June non-farm payroll figures on Thursday, for further insights into labor market conditions.

In other precious metals, spot silver gained 0.5% to $36.24 an ounce, platinum rose 2.2% to $1,380.31 and palladium climbed 2% to $1,122.