Tunisia expects economy to grow 4 pct: government

TUNIS (Reuters) - Tunisia expects the economy to grow 4 percent next year versus 3.6 percent expected for 2013, the government said on Monday, with the country still struggling to recover from its worst political crisis in more than two years. "The growth rate will be 4 percent in 2014," Slim Besbes, the economic advisor to the prime minister said, according to the state news agency TAP. Tunisia has been hit by political turmoil this year with the assassination of two opposition figures sparking its worst crisis since autocratic leader Zine al-Abidine Ben Ali was toppled in January 2011. In the three years prior to his removal, growth in Tunisia was above 5 percent. Tunisia's budget deficit should narrow to 6.5 percent next year from 7.4 percent of GDP expected in 2013, as the Islamist-led government seeks to impose strict new fiscal measures, Finance Minister Elyess Fakhfakh over the weekend. Tunisia is negotiating with the European Union for a credit of up to 500 million euros, the minister said, adding that the United States has "voiced readiness to grant a loan guarantee to Tunisia in 2014". Tunisia's economy will expand less quickly than hoped this year, with GDP growth forecast at 3.6 percent compared to 4 percent previously, the minister said last month, putting partial blame on slower growth in Europe.