The rating agency Fitch lowered on Friday by one notch the rating of the debt of Tunisia, citing the fall in tourism and the slowdown in investments.
Fitch has downgraded to “BB-” to “B+” the rating of tunisia, whose future remains stable.
The agency says, “the fall of tourism in a context of high risks to the security, slowdown of investments, while there are frequent changes of government and of the episodes of strikes have weakened the growth and the economic outlook”.
Fitch believes that the expansion of the tunisian economy was only 1.2% in 2016 as against 4.5% in average before the tunisian revolution of 2011 and around 4% on average for the countries scored in the same manner.
The tourist arrivals have continued to decline but at a slower pace, dropping from 8% in September year-over-year after experiencing a fall of 38% in the 1st quarter of 2016.
Fitch projects that the growth of the gross domestic Product (GDP) of tunisia will reach 2.3% in 2017 and 2.5% in 2018. The public deficit represented 6.4% of GDP last year and in 2017, Tunisia will need to borrow on the foreign markets, the equivalent of 7% of its GDP to meet its deadlines and the needs of its budget, ensures the agency.
The stable outlook of the rating is based, however, positive elements such as the progress of reforms, in particular banking, and the commitment of a programme of support over four years, endorsed by the IMF.
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