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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.
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