Tunisia 2012 budget gap likely at least 6 per cent of the GDP

Reuters , Thursday 8 Dec 2011

Possible increase in Tunisian budget deficit represents 2 per cent of the country's GDP next year compared to 2011

Tunisia's budget deficit is likely to widen to at least 6 per cent of GDP next year and the government aims to avoid further widening to protect its investment grade credit rating, the country's finance minister said on Thursday.

"This year we are going to end up with a budget deficit of 4 per cent, next year we will be very lucky if we end up with 6 per cent," Jalloul Ayed told a conference.

"We don't want the budget deficit to increase to 8-9-10 per cent because if that were to be the case, Tunisia could lose its investment grade, we don't want that."

Tunisia has the lowest investment grade rating and is on negative outlook with all three major ratings agencies.

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