Saied’s strategy to revitalize Tunisia’s beleaguered finances and stimulate economic growth

Outlet: Arab News

Language: English

Abstract: Tunisia's economy faces significant challenges, with high unemployment, soaring inflation, and substantial external debt. President Kais Saied's proposal to levy a tax on the wealthy elite has stirred both curiosity and criticism. While seen as a populist move by some, others view it as a step towards social justice. However, doubts linger about its effectiveness in alleviating economic struggles. Saied's rejection of IMF loan conditions complicates matters further, raising concerns about Tunisia's ability to meet its debt obligations. The proposed tax aims to redistribute wealth and stabilize state finances, but economists fear it could deter investors and exacerbate fiscal pressures. Balancing social justice with economic stability will be key to its success, but structural reforms are also needed to address Tunisia's underlying economic challenges.

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