This is bad news for the Tunisian economy which is still struggling to emerge from the turmoil that followed the Arab post-spring period and which was amplified by the rise of security risks.
The international rating agency Fitch Ratings, lowered the rating of Tunisia's debt on Friday. The reasons for this deterioration from BB to B +, though with a stable outlook, relate to the decline in the tourism sector and the slowdown in investment.
"The downfall of tourism in a context of high security risks, a slowdown in investment as there are frequent changes of government and strike episodes have weakened economic growth and prospects," experts Ficth in a statement widely resumed by the Tunisian media, a way to remind the authorities that the country is still far from leaving the hostel.
Economic moroseness
According to Fitch, growth in the Tunisian economy stood at 1.2% in 2016, compared with an average of 4.5% before the socio-political events of 2011. In 2017, the projected GDP growth rate is 2.3% and 2.5% in 2018, which is far from the expected momentum to boost the country's economy.
One of the reasons for this bad economic situation and which justified Fitch's decision is the sluggishness of the tourist sector, one of the main breasts of the Tunisian economy. The drop in tourist arrivals in the country has continued in recent years, although with a slower pace in recent months. Last September and over the last twelve months, the decline was 8% after a decline of 38% already registered in the first quarter of 2016.
An international recourse that is likely to be expensive
Source: La Tribune
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