Tunisia has striven to push through reforms needed to secure the third tranche of a $2.9bn credit line from the IMF. But political risks further may be lifting after January 2018’s unrest.
Economic risk (MEDIUM): Economic actuvity is picking up but the Tunisian economy faces key challenges to maintain an acceleration in growth.
Political risk (HIGH): High unemployment and mishandled spending cuts could fuel more social unrest in the wake of the protests at the turn of 2018. The return of British tourists is positive.
Financial risk (MEDIUM): The adoption of new banking sector legislation, especially in bankruptcy and central bank governance, and business plans for public banks will enhance the sector’s ability to tackle high non-performing loans.
Commercial risk (MEDIUM): Tunisia is still ranked highly within the region in terms of the ease of doing busi- ness. The World Bank has given a $500m loan to support the business environment.