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BCT: beginning of recovery of household consumption

Published the:  05/05/2011

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May 5, 2011 - TAP - Tunisia's Central Bank (TCB) Governor Mustapha Kamel Nabli said, on Thursday, that the beginning of recovery of household consumption is perceptible, as households turn anew to bank credits. He estimated that wage rises could contribute to boost consumption.
He added, during a meeting in Tunis with the heads of enterprise, that these factors are likely to revive domestic demand, in decline these last months, as a result of falling consumption and slowing down of investment, given the climate of uncertainty prevailing in the country.
The crisis, he said, worsened the situation even more, impacting negatively the exporting enterprises as well as tourism.
In this connection, he called to turn to Algeria which is an important tourist-sending market to Tunisia.
Mr. Nabli reminded the different economic indicators during the last four months, citing notably the drop of industrial production by 12%, against a rise of exports of manufacturing industries by 11.6%.
He also mentioned the drop in the tourist sector's performance between 45 to 55%, and the movements of travelers of 25%, in addition to the fall of the mining and phosphate sector's activities by 2.5%.
Up to last April, the current payment balance deficit reached 2.5% of the Gross Domestic Product, the same level as in 2010, while inflation went up by 3%.
For the BCT governor, the decrease of remittances by Tunisian expatriates by 12.5% during this period is somewhat "disconcerting."
As regards credits to fund the economy, they rose by 3.7% during the first four months of 2011, against 3.9% during the same period of 2010.
Success of the democratic transition hinges, according to Mr. Nabli, on the economic success, pointing out that the great challenge has to do with the preservation of the economic fabric and the creation of new projects.