Tunisia continues to face elevated macroeconomic vulnerabilities and high unemployment, said the IMF Executive Board after completing the second review under the Extended Fund Facility (EFF) Arrangement. The government’s reform program supported by the EFF aims at reducing macroeconomic vulnerabilities, ensuring adequate social protection, and fostering private sector-led, job-creating growth. “The Tunisian authorities have begun to address these challenges through a deficit-reducing budget for 2018, monetary policy tightening, and a renewed commitment to a flexible exchange rate”, stressed IMF Deputy Managing Director, Mitsuhiro Furusawa. According to the IMF official, “successful fiscal adjustment will require strong policy implementation. “Building on the real exchange rate depreciation in 2017, exchange rate flexibility will remain critical to correct the remaining overvaluation of the real exchange rate, improve the current account deficit, and rebuild reserves,” the IMF Executive Board chairman said.

Source: The North Africa Journal March 30, 2018 07:52 UTC