Tunisia is continuing its efforts to stabilize its economy in 2024, by mobilizing significant international financing to support the state budget. Loans, more loans! At the same time, the country has recorded a cyclical reduction in its trade deficit, but the inflation rate remains high and the economy is struggling to restart.
Tunisia has managed to mobilize an envelope of 50 million euros from the Italian government, intended to finance the state budget for the 2024 financial year. This agreement, signed on April 17, 2024, was ratified by presidential decree No. 455 and published in the Official Journal No. 100 of 2024.
In addition to this Italian financing, Tunisia has also secured other sources of funds to support its budget. The Arab Monetary Fund (AMF) granted it $38 million, while the African Development Bank (AfDB) released $400 million. Within the framework of bilateral cooperation, discussions are underway with Algeria to obtain $300 million and with Saudi Arabia for $500 million in financing.
The European Union (EU) has also provided support by releasing budgetary support of 150 million euros, or approximately 506 million dinars, in the form of a grant. This direct financial transfer from the EU to the Tunisian Public Treasury represents significant support for the country.
At the national level, Tunisia has managed to raise foreign currency resources through an agreement with several local banks, making it possible to mobilize 156 million euros and 16 million dollars to finance the 2024 budget.
All these loans will undoubtedly increase the country’s external debt, which is reaching unprecedented levels. We would have liked to see these funds spent to boost investment, that is, the creation of wealth and jobs, but they are often spent to finance the state budget, which continues its upward trend, while the economic growth rate is sluggish (0.4% in 2023).
On another level, Tunisia’s trade deficit has narrowed, falling to 9,633.3 million dinars at the end of July 2024, against 10,225.8 MDT for the same period in 2023. The rate of coverage of imports by exports gained 1.4 points, reaching 79.4%, according to data published by the National Institute of Statistics (INS).
It remains true that the country’s trade deficit remains very high and is the main cause of the maintenance of inflation at relatively high rates (7%), inflation in our country being largely imported.
