tian government backtracked on economic
As the economy recovers, Tunisia’s government faces many challenges.
reforms. It increased social spending consid-
These include reassuring businesses and investors, bringing budget and
political uncertainty caused economic growth
system, bringing down high unemployment, and reducing economic dis-
erably to address public dissatisfaction. But to slow significantly, reducing the govern-
ment’s revenues. Economic growth is likely to
remain slow during the next several years. The sectors that were hit the hardest were tourism, manufacturing, and construction.
Tunisia’s diverse, market-orientated econ-
omy has long been seen as a success story in
current account deficits under control, shoring up the country’s financial
parities between the more developed coastal region and the impoverished interior.
The Middle East is best known for producing and exporting oil, which
has a substantial impact on the entire region, both through the wealth that it generates and through the movement of labour. But the unrest in Syria has caused foreign investments to stop and prices to rise.
The regions oil importers are in urgent need of growth-orientated
Africa and the Middle East. But it faces a range
reforms to rebuild industry sectors and encourage outside investment in
political transition.
continue to benefit from the strong oil price – they are expected to have
of challenges during the country’s ongoing
Due to the country’s liberal strategy, coupled
with investments in education and infrastruc-
economies hit hard by social and political upheaval. But oil exporters will some growth rate in 2013.
Philippe Dauba-Pantanacce, Standard Chartered Bank’s senior econo-
ture, the country saw decades of 4-5% annual
mist for the Middle East and North Africa (MENA) region, noted: “In 2012
dards. But economic performance was halted
producing countries and the oil importing countries, but I think as we go
GDP growth, as well as improving living standuring former President Zine el Abidine Ben
Ali’s tenure, and unemployment rose among the country’s growing number of university
graduates. In January 2011, the president was overthrown, sending Tunisia’s economy into
we’ve seen quite a massive gap in terms of GDP growth between the oil
into 2013 and the year after, we’re going to see the growth potential of a lot of oil importers come back on trend. […And], if you think of countries like Tunisia, it’s estimated that in a new environment, countries could actually grow on a much higher path than previously.”
Smaller, richer countries like Qatar and the United Arab Emirates have
a tailspin as tourism and investment declined
used oil revenues as a buffer against unrest, and have increased wages and
Tunisia’s main exports include textiles and
riorating fiscal balances and average debt at more than 70% of GDP, spend-
sharply.
apparel, food products, petroleum products,
chemicals and phosphates. Its main economic partner, the European Union, receives about 80% of its exports.
spending to meet social demands. But with falling budget revenues, deteing their way out is not an option for the regions that do not produce oil.
For the world’s biggest oil exporter, Saudi Arabia, youth employment is a
major problem. With a population of 27 million, 10.5% being jobless, rising poverty and ageing leadership present growing challenges.
The United Nations economic annual report – World Economic Situation and Prospects 2013 (WESP) – says that African economies are expected to grow 4.5% this year despite a slowdown in the global economy. According to the WESP, most African countries’ growth will be stronger than the global average.
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