Tunisia’s Economy

This week on Diigo the articles I chose have a common theme of economy reform vs. hope. The first article from Reuterspublished Friday February 6, 2015. Prime Minister Habib Essid promised his people quick reforms to stimulate growth. Tunisia adopted a new constitution last year. It faces pressure from international lenders to curb high public spending, including cutting subsidies on basic foods and fuel. Jobs, high living costs and economic opportunities. Essid states, “Temporary solutions are no longer appropriate”. The government sees economic growth increasing to 3 percent in 2015 from an estimated 2.5 percent in 2014, while the budget deficit is expected to narrow to 5 percent of gross domestic product from 5.8 percent. With new reforms the people are hoping that the economy will finally grow towards the right direction. They have hope that the government is listening to them and will finally act on their behalf. The next article from Daily News Egypt published March 6, 2012. Tunisia’s economic growth has been cut to 3.5 percent in 2012, from a previous forecast of 4.5 percent due to declines in foreign investment and tourism. Tunisia’s government said in December the economy would grow 4.5 percent in 2012, but they would have to put off foreign investment. Due to the leaving of Zine Al-Abidine Ben Ali in 2011 sparking the “Arab Spring” , protests, strikes have followed. The revolts have forced businesses to suspend operations and drove away foreign tourists that Tunisia relies for much of its revenue. The economy also shrunk to 1.8 percent, the supplementary budget increased in spending of 1 billion dollars. During this year the people of Tunisia had no hope. They were in a downward spiral and probably thought how would they ever get out of it.

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