Source: REUTERS
Rwanda’s economy is expected to grow 6.6% in 2024, up from this year’s figure of 6.2%, the finance minister and central bank governor told the International Monetary Fund in a letter.
In February, Finance Minister Uzziel Ndagijimana had forecast economic growth of about 7.5% for the East African country in 2024 and 2025. The economy grew 8.2% in 2022.
“We foresee a temporary softening of economic growth, driven by needed tighter fiscal and monetary policies,” Ndagijimana and Central Bank Governor John Rwangombwa said in the Nov. 29 letter, made public late on Monday.
“On the demand side, private consumption and investment are expected to be the main growth drivers in the medium term as fiscal consolidation ensues.”
In November, Rwanda’s central bank held its key lending rate at 7.5% (RWREPO=ECI), saying it saw inflation falling towards its target range of 2% to 8% by year-end.
External factors could cloud the growth outlook, however, Ndagijimana and Rwangombwa said.
“A further deepening of geopolitical fragmentation, another spike in global energy, food, and fertilizer prices, or a steeper decline in trading partners growth would weigh on the outlook,” they said.
ABOUT THE AUTHOR: Reporting by George Obulutsa; Editing by Jacqueline Wong and Clarence Fernandez, REUTERS.
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