Middle-east Arab News Opinion | Asharq Al-awsat

Fitch Downgrades Tunisia to 'B+' - ASHARQ AL-AWSAT English Archive
Select Page

Cairo- Fitch Ratings has downgraded Tunisia’s long-term foreign and local currency issuer default ratings to ‘B+’ from ‘BB-’. The outlook is stable.

The agency explained this by “the collapse of tourism in the context of elevated security risks, slowdown in investment amid frequent government changes and episodes of strikes and social unrest that have weakened economic growth performance and prospects.”

Fitch estimates GDP growth for 2016 at 1.2%, compared with a pre-revolution long-term average of 4.5%, and versus medians of 4.0% for ‘B’ peers. Inflows from tourism continued to slow, though at a moderating pace (down 8% yoy in September, versus a 38% decline in H1 2016).

Fitch projects GDP growth of 2.3% in 2017 and 2.5% in 2018

Fitch’s estimate for the 2016 general government deficit of 6.4% of GDP and that the government will need to borrow the equivalent of 7% of GDP externally to meet its amortization and budget needs in 2017.

Asharq Al-Awsat

Asharq Al-Awsat

Asharq Al-Awsat is the world’s premier pan-Arab daily newspaper, printed simultaneously each day on four continents in 14 cities. Launched in London in 1978, Asharq Al-Awsat has established itself as the decisive publication on pan-Arab and international affairs, offering its readers in-depth analysis and exclusive editorials, as well as the most comprehensive coverage of the entire Arab world.

More Posts

Follow Me:
FacebookGoogle PlusYouTube