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The Tunisian Ministry of Health announced that the epidemiological situation in the country is dangerous, and there is a recommendation for a complete ban every weekend, to counter the outbreak of the Corona virus.
It is becoming increasingly difficult to impose a blanket ban on the economy, at a time when the Tunisian economy is suffering the harsh consequences of the pandemic.
The International Monetary Fund urged Tunisia to control massive wages and support energy allocations and transfers to public companies, warning that the budget deficit may rise to more than nine percent of GDP in the absence of these measures.
The IMF’s demands to reduce the fiscal deficit come as violent protests rocked Tunisia a week ago, demanding jobs and economic development, amid unprecedented economic hardship in Tunisia.
Tunisia’s public finances are in a very difficult situation, as the fiscal deficit is expected to reach 11.5% of GDP in 2020, the highest in almost four decades.
The 2021 budget aims to reduce the fiscal deficit to 6.6%, but the International Monetary Fund said in a statement after a visit to Tunisia that specific measures are needed to support this goal.
The IMF expects GDP growth of 3.8% this year, compared with a record contraction of 8.2% expected in 2020.
