World Bank Urges Tunisia to Speed Up Economic Growth
21 January 2014
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According to the World Bank (WB), "The most urgent challenge for Tunisia today is to accelerate reforms that can stimulate economic growth. Austerity measures alone will not stimulate economic growth or job creation and could even act as a brake in the short term."
In its latest economic note, titled "Escaping Austerity by Accelerating Growth," the WB believes that Tunisia is at a critical juncture economically. The WB called on Tunisia to more vigorously commit to removing the structural obstacles hindering its progress towards a more robust growth path: "As the transition process continues, the political and security difficulties that marked 2013 also weighed on economic activity in Tunisia. Investments, exports and tourism have fallen or stagnated during the year. The pace of economic expansion has slowed due to these unfavorable developments," the WB report states.
"Budgetary vulnerability has deteriorated, external deficits remain high and public debt is increasing, even if it remains sustainable. Given the sluggish growth outlook, unemployment is likely to remain high in the near future," the WB further notes.
The current phase of political uncertainty affects the decisions of economic actors, but it also represents a real opportunity. It is important that stakeholders in the political arena and civil society agree on a series of priority and ambitious economic reforms that should be initiated, or even implemented immediately to remove these main structural obstacles and revive economic growth that is sustainable and inclusive, generating productive job opportunities for the Tunisian population, the WB indicates.
Bechir Lakani.
Leconomistemaghrebin.com
Published January 21, 2014.
Posted online January 21, 2014.
In its latest economic note, titled "Escaping Austerity by Accelerating Growth," the WB believes that Tunisia is at a critical juncture economically. The WB called on Tunisia to more vigorously commit to removing the structural obstacles hindering its progress towards a more robust growth path: "As the transition process continues, the political and security difficulties that marked 2013 also weighed on economic activity in Tunisia. Investments, exports and tourism have fallen or stagnated during the year. The pace of economic expansion has slowed due to these unfavorable developments," the WB report states.
"Budgetary vulnerability has deteriorated, external deficits remain high and public debt is increasing, even if it remains sustainable. Given the sluggish growth outlook, unemployment is likely to remain high in the near future," the WB further notes.
The current phase of political uncertainty affects the decisions of economic actors, but it also represents a real opportunity. It is important that stakeholders in the political arena and civil society agree on a series of priority and ambitious economic reforms that should be initiated, or even implemented immediately to remove these main structural obstacles and revive economic growth that is sustainable and inclusive, generating productive job opportunities for the Tunisian population, the WB indicates.
Bechir Lakani.
Leconomistemaghrebin.com
Published January 21, 2014.
Posted online January 21, 2014.
