Tunisia expects deficit at 6.7% of GDP in 2022

Tunisia's economy has been hit hard by the pandemic after years of stagnation and the government expects it to grow by 2.6% next year, it said. Tunisia has opened talks with the International Monetary Fund (IMF) for a rescue package, but any help would likely require the government to agree to significant and unpopular reforms including cuts to subsidies and the public sector wage bill and changes to loss-making state-owned companies.

Tunisia on Tuesday announced a 2022 budget of 57.2 billion dinars ($20 billion), 2.3% bigger than the 2021 budget, with an anticipated deficit of 9.3 billion dinars ($3.2 billion) or 6.7% of gross domestic product.

The budget anticipates a total borrowing requirement of 18.7 billion dinars next year, bringing the public debt to 82.6% of GDP. Tunisia's economy has been hit hard by the pandemic after years of stagnation and the government expects it to grow by 2.6% next year, it said.

Tunisia has opened talks with the International Monetary Fund (IMF) for a rescue package, but any help would likely require the government to agree to significant and unpopular reforms including cuts to subsidies and the public sector wage bill and changes to loss-making state-owned companies. President Kais Saied in July suspended the parliament and seized control of executive powers, pausing Tunisian talks with the IMF and major Western lenders who have said he needs to restore normal constitutional order.

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