Violent protests have hit Tunisia at a time of unprecedented economic hardship in the North Africa country that ran a fiscal deficit of 11.5% of GDP in 2020, the highest in nearly four decades. The 2021 budget aims to cut the fiscal deficit to 6.6 pct but the IMF, following a mission in Tunisia, issued a statement calling for specific measures to back this objective. Government wages doubled to about 20 billion dinars ($7.45 billion) in 2021 from 7.6 billion in 2010. Tunisia expects GDP growth of 3.8% this year, compared with a record contraction of 8.2% expected in 2020. The Central Bank agreed in December to buy treasury bonds worth 2.8 billion to finance the record fiscal deficit in 2020 budget after weeks of disagreement with the government.

Source: The North Africa Journal January 23, 2021 00:00 UTC