Fitch keeps Tunisia's credit at B-
Fitch has agreed to maintain Tunisia’s sovereign rating at "B-" with stable outlooks, reaffirming that the Tunisian economy is characterized by diversity and high human development indicators compared to other countries, as well as external resilience. However, the agency warns of rising government debt levels, which are expected to reach 85% of GDP by 2026, along with an increasing fiscal deficit projected at 6.4% of GDP due to higher support costs, especially for fuel subsidies. Additionally, it anticipates the current account deficit will increase to 3.9% this year before declining to below 2.5% in 2027 and 2028, with significant financing needs reaching up to 13.5% of GDP by 2028. The agency expects real economic growth to be around 2% annually between 2026 and 2028, with inflation decreasing to 5% by 2028, and without a sharp decline in the dinar’s value owing to reduced external financing needs. It also highlights financial risks stemming from increased spending on aid and employment to address social tensions.
Notice: This Is an AI-Generated Summary
Comments (0)