Economic growth is expected to continue to strengthen. Exports will benefit from a return to normal activity in some sectors, such as mining, tourism and transport, from stronger activity in the euro area and from the depreciation of the dinar. The implementation of the law on investment will help stimulate capital spending. Inflation will continue to rise in 2018. Unemployment will fall only slightly. The current account deficit will start to decline as a result of a sharp recovery in tourist arrivals.
A tighter monetary policy will be required if inflationary pressures persist. In order to return public debt to a sustainable level, the control of public expenditure needs to be based on a medium-term strategy and accompanied by an improved business climate in order to underpin growth and support the creation of jobs and businesses. Encouraging the recruitment of women and young graduates, as well as employment in the interior regions of the country, would generate more inclusive growth by reducing disparities in the labour market.