The political upheaval in Tunisia is spilling over into the struggling north African country's economy, with economists and ratings agencies hastily revising their previously bullish predictions for growth.
Economists have already begun to revise economic forecasts downwards following the ousting last week of president Zine el Abidine Ben Ali and the formation of a new unity government. Alia Moubayed, an economist at Barclays Capital, said in a recent note that tourism and foreign direct investment critical to financing the country's trade deficit would be most affected by the turmoil.
Credit ratings agencies have also begun to downgrade the country's bonds, with Moody's Investors Service reducing its assessment yesterday to "Baa3", its lowest investment-grade rating. Stocks listed in Tunis, meanwhile, have taken a hammering.
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