Tunisian Economic Prospects Favorable But Stability Key: IMF

Tunisia’s medium-term growth prospects are favorable, but maintaining economic stability is essential as the country recovers from Arab Spring street protests last year, the International Monetary Fund said on Friday.

An IMF annual assessment of the Tunisian economy, which is struggling to emerge from recession, said growth could gradually reach 6 percent annually, assuming the economy remains stable and reforms are implemented to improve the investment climate.

“With the economic recovery facing risks from the unsettled political situation and the weak global environment, (IMF) directors saw a need to support economic activity while safeguarding macroeconomic stability,” the IMF said.

The Fund stressed that the country’s central bank should be allowed to act independently in setting monetary and exchange rate policies, as well as overseeing banks.

The country’s president and parliament last month sacked Mustafa Kamel Nabli, Tunisia’s central bank governor, after a dispute over policy.

Reuters