Tunisia Expects Inflation to Reach 10.5% in 2023

People walk past shops in the Medina, in the Old City of Tunis, Tunisia, July 27, 2021. Picture taken July 27, 2021. REUTERS/Zoubeir Souissi
People walk past shops in the Medina, in the Old City of Tunis, Tunisia, July 27, 2021. Picture taken July 27, 2021. REUTERS/Zoubeir Souissi
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Tunisia Expects Inflation to Reach 10.5% in 2023

People walk past shops in the Medina, in the Old City of Tunis, Tunisia, July 27, 2021. Picture taken July 27, 2021. REUTERS/Zoubeir Souissi
People walk past shops in the Medina, in the Old City of Tunis, Tunisia, July 27, 2021. Picture taken July 27, 2021. REUTERS/Zoubeir Souissi

Tunisia expects inflation to average 10.5% in 2023, up from 8.3% expected for 2022, as inflationary pressures continue to increase, economy minister Samir Saeed said on Monday.

The Tunisian government has no alternative to an agreement with the IMF, Saeed added.

Tunisia has reached a staff-level agreement with the IMF for a $1.9 billion rescue package in exchange for unpopular reforms, including cutting food and energy subsidies, and overhauling public companies. It aims to reach a final deal in weeks.

The economy ministry said on Friday that economic growth in 2023 would be 1.8%, compared with 2.5% expected this year.

The country's external borrowing needs next year will increase by 34% to 16 billion dinars ($5.2 billion) while public debt is expected to rise by 44.4% to 20.7 billion dinars.

The 2023 budget showed that wage bill in the public sector will drop from 15.1% in 2022 to 14% next year, a main reform demanded by the IMF.

The country's trade deficit is expected to shrink by 1.5% next year, to 15.8% of GDP in 2023.



Saudi Arabia, Djibouti Sign Agreement to Promote, Safeguard Investments

The event is being held under the patronage of Saudi Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud - SPA
The event is being held under the patronage of Saudi Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud - SPA
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Saudi Arabia, Djibouti Sign Agreement to Promote, Safeguard Investments

The event is being held under the patronage of Saudi Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud - SPA
The event is being held under the patronage of Saudi Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud - SPA

Saudi Arabia and Djibouti have signed an agreement to encourage and protect mutual investments, marking a significant step in enhancing economic cooperation between the two nations.
The agreement was signed by Saudi Minister of Investment Khalid Al-Falih and Djiboutian Secretary in Charge of Investment and Development of the Private Sector Safia Mohamed Ali Gadileh during the 28th World Investment Conference in Riyadh, SPA reported.

The event is being held under the patronage of Prince Mohammed bin Salman bin Abdulaziz Al Saud, Saudi Crown Prince and Prime Minister.
Both officials praised the agreement, emphasizing its importance in fostering collaboration between the private and government sectors of both countries. They highlighted the agreement’s role in supporting the ambitious investment initiatives currently being pursued by the Kingdom and Djibouti.
The agreement is designed to create a secure and attractive investment environment by offering key advantages such as investment protection, national treatment, fair and equitable treatment, transparency, and access to national courts or international arbitration for dispute resolution.
By ensuring these safeguards, the agreement aims to increase the volume of mutual investments across various sectors and strengthen economic ties between the two nations.