Huge economic and social challenges await Jebali

The government of Hamadi Jebali, whose make-up will be soon announced, should take up huge economic challenges and meet "so urgent" social demands. "The next government will start its duties at a very hard economic juncture," asserted Mr. Mustapha Kamel Nabli, Tunisia Central Bank (TCB) Governor, who forecasts a zero economic growth rate in 2011, or even a negative one, which will imply a drop in the rate of employment creation. The unemployment rate reached "record highs," going up from 13% in May 2010 to 18.3% in May 2011. It could even get worse. Besides, the world situation will also be characterised by a slowed down economic growth, notably in the euro zone, Tunisia's first economic partner, not to mention the instability prevailing in Libya which is Tunisia's second economic partner. For experts, this situation could constitute an additional pressure on the Tunisian economy, all the more so that the EU pledged to grant to Tunisia financial assistance of about 400 million euros and credits of about 3 billion euros, during the 2011-2013 period. As a result of the falling foreign direct investments (FDIs) by 31.9% during the 11 months of 2011, Tunisia's foreign currency reserves dropped to 10,504 million dinars, i.e., 113 days of importation on December 13, 2011, against about 5 months late in 2010. The Tunisian enterprises' activities registered a perceptible decline, as a result of strikes and sit-ins, which could lead the Tunisian economy to a "disastrous situation," according to chairwoman of the Tunisian Trade, Industry, and Handicrafts Union Wided Bouchmaoui. Shortly after his election to the Presidency of the Republic, Mr. Moncef Marzouki called for a six-month political and social truce so as to allow the Jebali government to put into effect an economic programme which is for the time being still unknown to the public.