Growing Signs of a Cooling Tunisian Economy

Tunisia, the region’s most aggressive and best run economy has witnessed a cooling of its growth in late 2008, a trend that will persist in 2009.

Despite the numerous speeches from officials arguing that Tunisia is sheltered from the global economic crisis, and the recent statement from a senior IMF official that the Maghreb is likely to benefit from it instead, in form of greater foreign investments, events in the region point to a rather alarming development. Tunisia, the region’s most aggressive and best run economy has witnessed a cooling of its growth in late 2008, a trend that will persist in 2009. The slowdown could even shift into a full crisis. The slowdown in the fourth quarter of 2008 was partly the result of decreasing exports and a 23% loss of the dinar’s value vis-à-vis the US dollar. Continue reading here.