Tunisia Mobilizes Support ahead of IMF Talks

Tunisia is mobilizing support ahead of IMF talks.
Tunisia is mobilizing support ahead of IMF talks.
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Tunisia Mobilizes Support ahead of IMF Talks

Tunisia is mobilizing support ahead of IMF talks.
Tunisia is mobilizing support ahead of IMF talks.

Tunisia is preparing to head to the International Monetary Fund (IMF) in May to persuade the Fund to support its domestic economic reforms programs.

Prime Minister Hichem Mechichi held a series of preparatory meetings ahead of the talks.

Ambassador of the United States in Tunis Donald Blome affirmed during talks with the PM on Thursday his country's support for Tunisia in its negotiations with the IMF to raise necessary financial resources.

Blome added that the US administration is fully ready to support Tunisia's development efforts and ensure the success of the democratic process, the Prime Ministry said in a statement.

The ambassador also welcomed the progress made in the development program led by the Millennium Challenge Corporation in Tunisia, which will provide about $500 million in donations to support the national economy, especially in transportation and agriculture.

Ambassador of the European Union to Tunisia, Marcus Cornaro, on Thursday, expressed the EU's full support to the efforts of the Tunisian government in its national economic reform program.

Speaking during a meeting with Mechichi in Kasbah on Thursday, Cornaro added that the EU has support and cooperation mechanisms that will be made available to the Tunisian government, according to a statement from the Prime Ministry.

He stressed that the EU will be the first to defend Tunisia with member countries through ambitious investment and employment programs.

According to the IMF, Tunisia ended 2020 with an 8.8 percent recession. Tunisia’s current budget has a deficit of TND18.5 billion ($6.7 billion) and is likely to increase, according to preliminary estimates.



Moody’s Warns US Tariffs May Hurt India’s Manufacturing Push, Slow Growth 

08 August 2025, India, New Delhi: A shopkeeper reflected on a mirror waits for customers at a jewelry shop. (dpa)
08 August 2025, India, New Delhi: A shopkeeper reflected on a mirror waits for customers at a jewelry shop. (dpa)
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Moody’s Warns US Tariffs May Hurt India’s Manufacturing Push, Slow Growth 

08 August 2025, India, New Delhi: A shopkeeper reflected on a mirror waits for customers at a jewelry shop. (dpa)
08 August 2025, India, New Delhi: A shopkeeper reflected on a mirror waits for customers at a jewelry shop. (dpa)

US President Donald Trump's steep 50% tariffs on Indian imports could severely undermine India's manufacturing ambitions and slow economic growth, Moody's Ratings said on Friday.

Trump imposed an additional 25% tariff on Indian goods on Wednesday, citing New Delhi's continued purchases of Russian oil, taking the total tariff to 50% — far higher than those levied on other Asia-Pacific countries.

Moody's said India's real GDP growth may slow by around 0.3 percentage points from its current forecast of 6.3% for the fiscal year ending March 2026.

"Beyond 2025, the much wider tariff gap compared with other Asia-Pacific countries would severely curtail India's ambitions to develop its manufacturing sector, particularly in higher value-added sectors such as electronics, and may even reverse some of the gains made in recent years in attracting related investments," the ratings agency said.

Reducing Russian oil imports to avoid penalty tariffs could also make it harder for India to secure alternative crude supplies in sufficient quantities, Moody's said.

A larger import bill would widen the current account deficit, especially amid weaker tariff competitiveness that could deter investment inflows.

"We expect there will likely be a negotiated solution that falls between the two scenarios described above," Moody's said.

"The magnitude of the drag on growth from tariff obstacles will influence the government's decision to pursue a fiscal policy response, although we anticipate the government will adhere to its focus on gradual fiscal and debt consolidation."

The Reserve Bank of India (RBI) kept its key rates unchanged as expected on Wednesday and retained its "neutral" policy stance following a surprise 50-basis-point rate cut in June.

Global trade uncertainties, fueled by the US tariffs, have also unsettled foreign investors. Foreign portfolio investors have sold $900 million worth of Indian equities so far in August, after $2 billion in outflows in July.

India's benchmark equity indices — the Nifty 50 and the Sensex — fell 2.9% in July and are down 0.7% so far in August, as investor anxiety rises amid escalating trade tensions.