Tunisia cuts GDP growth forecast for 2013

The budget deficit in the North African state is also projected to be wider than expected at 7.4 per cent of GDP compared to the earlier estimate of 5.1 per cent, Finance Minister Elyess Fakhfakh said.

He added that he expected total debt to reach 48 per cent of GDP this year from 46 per cent previously expected and warned it could rise to 52 per cent if salaries continue to go up. Fakhfakh cited slower economic growth in Europe and higher Tunisian government spending for the revised estimates. He did not mention the political crisis that has paralysed the government in Tunis for a month.