editorial team) - The draft economic budget shows that 2024 will be a decisive year in terms of achieving the priorities of restoring economic and financial stability, boosting investment and strengthening social cohesion. Next year's draft economic budget, one of the points in the government's statement to be made, Friday, at the start of the debate on the draft State Budget and the 2024 Finance Bill in the Assembly of People's Representatives (ARP), stresses that particular attention will be paid to creating the necessary conditions for consolidating growth and improving competitiveness. This can be achieved by making progress in reforms of the business climate and implementing sectoral strategies to promote promising activities. The draft economic budget is an economic report that sets out the characteristics and economic guidelines for 2024 and forecasts GDP growth of 2.1%, compared with the 0.9% projected for 2023. Value added in the agricultural sector is expected to grow by 1.8% in 2024, compared to negative growth of around 9.7% in 2023. Value added in the industrial sector will also increase by 2.2%, compared to 0% in the current year. Growth in the services sector is estimated at 1.9%, compared with 2.1% in 2023. Strengthening the State's social role According to the economic budget document, the State's social choices for 2024 are aimed at ensuring equal opportunities and inclusion through the promotion of human development programmes, in particular the launch of a reform of the education system and support for higher education and vocational training. It will also promote cultural activities, strengthen social security, improve health services and strengthen active employment programs and economic empowerment mechanisms. In this context, the draft foresees that the per capita Gross Disposable Income (GDI) of households should reach TND 15,026.7 in 2024, compared to TND 13,695.4 in 2023. The draft budget also aims to reduce regional disparities, support urban and rural development programmes and encourage private investment. This draft has set the goal of increasing the growth rate in the next period, which will require the launch of a series of actions, including essentially the commitment to implement the work plan for sectoral policies and strategies and the setting of targets to boost private investment and exports. Accelerating the pace of reforms The draft economic plan for 2024 shows that the expected results continue to depend on accelerating the pace of implementation of the reforms needed to overcome the economic and financial crisis and restore the normal pace of economic growth. The growth rate targeted for 2024 remains below t he available means, requiring exceptional efforts to generate a positive shock to consolidate growth and restore financial equilibrium. Boosting the pace of investment The development model for 2024 is based on an 11.8% increase in investment at current prices, bringing its volume to almost 16.3% of GDP, compared with 16.1% in 2023. The sectoral breakdow n of investment shows in particular at 17.2% increase in investment in agriculture and fisheries to TND 1,500 million, a 10.7% increase in manufacturing to TND 3,930 million and a 28.7% increase in non-manufacturing to TND 3,804 million, in addition to a 7.8% increase in investment in services to TND 1,030 million. Foreign trade The development model assumes an increase in exports of goods and services by 3.9% at current prices, compared to an estimated rate of 8.5% in 2023, in relation to the decline in external demand. Conversely, imports of goods and services are projected to grow by 6.6% at current prices in 2024, compared with an expected negative growth rate of 0.8% in 2023, as a result of the increase in domestic demand for food (grain) and energy products. Continued downward trend in inflation In 2024, the consumer price index (CPI) is expected to continue its gradual downward trend for a number of reasons, including the continued decline in global commodity prices, the stability of supply chains and the impact of the increase in the BCT's policy rate, in addition to the decline in imported inflation. The BCT estimates that Tunisia's inflation rate will fall to 7.7% next year, compared with 9.4% for 2023 as a whole. Accelerated implementation of structural reforms The economic balance project considers that 2024 will be a crucial year for the implementation of the national programme of structural reforms needed to support the pillars of the economy. With the aim of developing the knowledge economy, 2024 will see an acceleration in the pace of reforms aimed at building the knowledge economy and promoting innovation and creativity through the development of the legislative and institutional system for the development of innovative companies and start-ups. Within this framework, the Law on the Knowledge Economy will be promulgated and a part (20%) of the projects resulting from the Innovation Councils will be finalised, thus helping to strengthen the attributes of national and foreign private invest ment. The government is committed to intensify efforts to promote entrepreneurship and investment, in line with progress in implementing the national strategy to improve the business climate, which is based on four key areas. These focus on procedures related to land issues, the digitalisation of various property transfer procedures, the launch of a digital map of investment land, and the improvement of public procurement procedures. On the other hand, the year 2024 will be marked by the promotion of renewable energy projects in relation to the need to export renewable energy through the ELMED electricity interconnector with Europe, in addition to developing the needs of national electricity consumption. The economic balance project is divided into four parts, relating to general balances, the development of the economic structure and the improvement of competitiveness, human development and social integration, as well as equitable regional development and integrated spatial planning. Source: EN - Agen ce Tunis Afrique Presse
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