Tunisia: Political transition remains fragile

GDP growth is expected in 2012 and 2013, after a contraction in 2011. Stronger GDP growth is possible in 2014-15. Inflation pressures will continue but the government will

boost social safety-nets. Despite government pledges under IMF conditionality, fiscal deficits are likely to remain elevated. The political transition and government

uncertainities resulted in public debt increasing to over 50% GDP.

Wide current account definits are likely to remain through to end-2015 and external debt ratios will continue to increase. Foreign exchange reserves are rebuilding but are yet to provide strong import cover.

Tunisia: Political transition remains fragile - Report