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Tunisia Rated Stable

Tunisia Rated StableTunisia Rated Stable

Fitch Ratings has confirmed Tunisia’s long-term foreign currency default issuer ratings at “B+” with stable outlook, according to an agency press release Friday night, TAP reported. “Fitch assumes an improvement in security and economic conditions since 2016 is maintained, which should help reduce the twin deficits in the coming years.” It expects general government debt will be 70% of GDP at end-2017 from 62% in 2016. “Improved security conditions relative to the post-2015 terrorist attacks have supported a recovery in tourism (tourist receipts were up 19% y/y in the nine months to September) and foreign direct investment (+13% y/y), the agency pointed out. Fitch “expects growth to be 2.8% in 2018 and 3% in 2019 as increased confidence allows a gradual economic recovery,” warning that “deterioration in security and political conditions remain the main downside risk to the outlook.” The agency “expects the general government deficit will decline gradually, to 5.8% in 2018 (including 5.4 % of GDP for the central government deficit) and 5.3% in 2019 from 6.4% in 2017.”

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