The International Monetary Fund (IMF) has called on Tunisia to implement economic reforms and strengthen health and social protection.
On Saturday, the IMF urged the country's authorities to develop an economic reform plan and enhance social protection following a virtual mission conducted by its experts in Tunisia between December and January. According to Agence France-Presse, the IMF called on Tunisia to give "absolute priority to spending on health and social protection," emphasizing the need to "adopt a wide-ranging and credible reform plan" to achieve "sustained, inclusive, and comprehensive growth in the medium term." The fund noted that the government's "proactive response" in the spring helped contain the first wave of the pandemic, but this also resulted in a GDP contraction of 8.2% in 2020.
The IMF also urged the financial authority to reduce the number of government employees and cut support directed towards public companies facing financial difficulties.
Earlier, the IMF suggested to the Tunisian authorities that direct assistance should be directed to poor families instead of the current price support system for certain goods, such as bread and fuel, which is availed by everyone.
It is worth noting that the COVID-19 pandemic has exacerbated the difficult economic and social situation in Tunisia, particularly with the collapse of revenues from the tourism sector, which is crucial to the Tunisian economy, and the impact on informal sectors that support many families. Several public enterprises, including Tunisair and the Gafsa Phosphate Company, are also suffering from mismanagement, weak investment, and high debts.
