Tunisian Finance Minister Nizar Yaiche has revealed various difficulties facing the country's economy in light of the novel coronavirus outbreak.
He said many new challenges will soon emerge as a result of the recent economic recession, which has led to the decline in volume of exports and state resources and the shortage in financial liquidity.
The economic situation is “very difficult” and requires “courage, path change, and unity among all political parties,” he noted.
Most of the public sector institutions have been experiencing financial deficits for years now, Yaiche explained, adding that the situation has become even more complicated now in light of the suspension of economic activities and the challenges faced by many sectors preventing them from resuming normal activity, such as the tourism and transport sectors.
The Minister stressed the importance of resorting to a number of directed solutions, since finding a unified and comprehensive economic solution is not possible at this period.
He said the country’s authorities “may implement plans and strategies that would affect each economic activity on its own and restructure many government institutions so they would return to the economic cycle in better conditions.”
Meanwhile, a number of experts have presented different scenarios for economic recovery and exit from the crisis to avoid failure.
They said Tunisia would most likely suffer an unprecedented financial and social crisis, adding that small and medium enterprises with limited financial capacity will be the most affected and may suffer bankruptcy.
This complicated situation will lead to closing at least 200,000 workplaces, raising the unemployment rate in the country from its current 15 percent to a possible 25 percent after the crisis.
“This would create a new obstacle for economic growth and recovery, especially if it was followed by protests and social discontent.”
According to Hakim Ben Hammouda, the former minister of economy, many economic sectors have been deeply affected.
He stressed that their recovery will be very difficult and requires great efforts and continued support, such as the tourism sector which has been directly affected by more than 80 percent.
The International Monetary Fund said last week that Tunisia has been hit hard by the virus, and the economy is expected to contract by 4.3 percent this year.
It would be the deepest recession since Tunisia’s independence in 1956.
