Tunisia seeks to cut joblessness through higher growth

TUNIS — Tunisia, whose economy has remained stagnant since the ouster of a long-time dictator in 2011, unveiled the outlines Tuesday of a five-year plan to cut unemployment by stimulating growth.

The country's key tourism sector has been badly shaken by two deadly attacks on foreign tourists by militants. Growth only reached 1 per cent in 2014, and the government recently said that figure would be halved this year.

Joblessness stands at nearly 30 per cent, with the number even higher among young people, and one in six Tunisians lives below the poverty line. The plan, published by the development ministry, envisages average annual gross domestic product growth of 5 per cent, starting off with a moderate gain next year and accelerating from 2018.

The higher growth, stimulated by better governance, diversification and regionalisation of the economy, would see unemployment dropping from 15.2 per cent to 11 per cent by 2020. At the same time, the budget deficit would be trimmed.

Last week, central bank chief Chedly Ayari said Tunisia would ask the International Monetary Fund for a new aid package, at least equal a $1.7 billion (1.5-billion-euro) credit line granted in 2013.