Tunisia's Central Bank said on Wednesday the country's financial system is insulated from the world financial downturn but it recommended more vigilance over its eventual impacts.

"The financial sector was not directly affected by the world financial crisis fallout, thanks to a sound activity in the banking and the financial sector," the bank said in a statement following its monthly meeting.

"The executive board considers that the situation requires activation of measures with respect to boosting economic growth and investment, promoting employment and reinforcing competitiveness to increase exports," it added.

Exports are Tunisia's growth engine, representing 45 percent of its national wealth.

The government expects a 5 percent growth in 2009.

Next year's inflation rate is expected to reach 3.5 percent, down from 5 percent in 2008.

Tunisia's central bank said it kept its key interest rate unchanged at 5.25 percent, following an excessive liquidity in money supply.

(Xinhua News Agency November 26, 2008)