Tunisia's risk of default will rise
Wednesday, February 3, 2021
Significance
The social unrest is partly the result of rising unemployment and poverty, worsened by the COVID-19 crisis. Political gridlock has also prevented the country from undertaking difficult reforms.
Impacts
- Unemployment is likely to stay high, and until the informal economy can resume it will remain a cause of unrest.
- The release of multiple vaccines should lift some pressure from the health crisis before the end of 2021.
- The presidency and parliament need to solve the current gridlock in order to implement reforms in due course.