Tunis (AFP)
The International Monetary Fund on Saturday encouraged Tunisia to set up a reform plan and strengthen social protection as the country, which is facing an outbreak of contamination by the coronavirus, is struggling to complete its budget for 2021.
An IMF team carried out a virtual periodic mission in late December and early January to Tunisia, which completed a four-year IMF financing plan in spring 2020 but did not request a new program.
"Proactive" management of the pandemic in the spring made it possible to contain the first wave of contaminations, but Tunisia nevertheless suffered a decline in its gross domestic product of 8.2% in 2020, according to estimates by the international organization.
He expects a recovery with 3.8% growth in 2021, while warning that this forecast largely depends on the epidemic situation and access to a vaccine.
"It will be essential to assign a clear priority to health and social protection spending," said the IMF, while calling for "a comprehensive and credible reform plan" to achieve "sustainable and inclusive growth".
The institution has long advocated for targeted aid in favor of poor families instead of the system of subsidized prices for certain products, including bread and gasoline, benefiting all households.
It also calls for reducing the number of employees paid by the State as well as support for loss-making public companies.
Many public companies, including Tunisair, the Compagnie des phosphates de Gafsa (CPG) or the Société de Fabrication des Boissons de Tunisie (SFTB, beer and soft drinks), suffer from poor management and a lack of investment. and are heavily in debt.
The pandemic has exacerbated the social crisis, bringing tourism, a crucial sector of the Tunisian economy, to its knees and disrupting the large informal sector.
Violent demonstrations have erupted several nights in a row for a week, followed by rallies to demand better social policy and the release of hundreds of protesters arrested by the police.
© 2021 AFP