Tunisia: Central bank warns of worst economic downfall
The Tunisian central Bank has added its voice to the ongoing political crisis. It is worried that if the political parties don’t find a solution to their differences, the economy will fall into a state that it has never before experienced. The board of the central bank has urged all stakeholders to work towards maintain stability in order to propel economic activities and avoid their downfall.
A tussle between the secular opposition parties and the government has been gaining momentum and there are fears that the situation could escalate. The government has proposed to stay in power till the end of September but the opposition wants it to resign immediately.
The board of directors issued a warning stating that the crisis made the economy become “persistence of risks” and therefore raising the bar of uncertainty and visibility of the economic sector. It also stated that the “exacerbation of tensions in the national political arena threatens the security and fundamentals of the national economy more than ever.”
The board’s statement highlights that Tunisia’s economy has been suffering from the standoff between the political parties and could be heavily paralyzed if the deadlock continues. The opposition parties want a technocratic government to take over the reins of power while the ruling coalition government declared that it will resign if a non-partisan administration will replace it.
In a much larger appeal, the board of directors urged “all the stakeholders to multiply their efforts to restore stability in the country” without which foreign investment, job opportunities and economic activities are bound to be negatively affected.
Tunisia’s currency has been depreciating in the market. The country’s global competitiveness ratings have slipped from 40th in 2011-2012 to 83rd in 2013-2014, according to Davos [World Economic] Forum.