Tunisia and Egypt are inching closer to a severe debt crisis that could have far-reaching implications for the volatile North Africa region. But Tunisia's role as the birthplace of the Arab Spring complicates the economic current scenario in the region. Its debt-to-GDP ratio is rapidly approaching 100 percent, and multiple currency devaluations have inflated interest payments on its debt. With over half of the government's revenues projected to be consumed by debt interest payments next year, the situation is becoming increasingly precarious. The potential debt default by Tunisia and Egypt carries significant implications for global money managers and regional stability.

Source: The North Africa Journal May 12, 2023 20:44 UTC