IMF: Rwanda’s economic performance under Kagame remains strong with growth beating expectations

1,006FollowersFollow

The International Monetary Fund (IMF) said on Friday that Rwanda’s macroeconomic performance was strong and would remain that way over the next two to three years.

According to the IMF, the economic growth of Rwanda continues to beat expectations, averaging 10.3 percent in the first half of 2019, on the back of a booming construction sector, robust activity in services, and a healthy agricultural output.

“As a result, the 2019 growth projection has been revised up from 7.8 to 8.5 percent, with strong upside risk—especially given the recently released GDP figures suggesting that the economy grew in double digits in Q3 2019,” IMF said in a statement sent to TODAY NEWS AFRICA in Washington DC.

The global fund said the fiscal deficit in 2018/19 was higher-than-expected due to accelerated implementation of investment spending; but remained within the program limits.

“This, combined with stronger demand for the capital-goods imports needed for construction, has led to a widening of the current account deficit. Growth should remain strong, at around 8 percent, over the next 2–3 years”.

The comments on Friday came more than a week after the Executive Board of the International Monetary Fund (IMF) on January 9, 2020, concluded the first review of Rwanda’s program supported by the IMF’s Policy Consultation Instrument (PCI). The decision was taken without an Executive Board meeting.

Rwanda’s PCI-supported program was approved on June 28, 2019 to support the implementation of Rwanda’s National Strategy for Transformation (NST).

Program modalities are focused on four main pillars: (i) creating budget space for the implementation of the NST while preserving fiscal and debt sustainability; (ii) improving fiscal transparency, including the identification and management of potential government liabilities, (iii) regaining momentum on domestic revenue mobilization; and (iv) supporting the implementation of the National Bank of Rwanda (BNR)’s new interest rate-based monetary policy framework.

On the inflation in Rwanda, IMF said after a period of subdued price pressure, inflation has come back within the BNR’s and the PCI’s Monetary Policy Consultation Clause (MPCC) targeted range partly reflecting stronger domestic demand and dissipating base effects. 

BNR has appropriately set the monetary stance by reducing interest rates at the trough of the inflation cycle in May and has since refrained from further easing as price dynamics reversed.

IMF: Rwanda’s economic performance under Kagame remains strong with growth beating expectations
Simon Ateba
Simon Ateba
Based in Washington, District of Columbia, United States of America, Simon leads a brilliant team of reporters, freelance journalists, analysts, researchers and contributors from around the world to run TODAY NEWS AFRICA as editor-in-chief. Simon Ateba's journalistic experience spans over 10 years and covers many beats, including business and investment, information technology, politics, diplomacy, human rights, science reporting and much more. Write him: simonateba@todaynewsafrica.com

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Trending Now

U.S. calls for independent probe into massacres in Tigray region in Ethiopia

The United States government on Thursday called for an independent investigation following massacres in the Tigray region in Ethiopia.The United States said the investigation...

U.S. government has no evidence WHO director general Tedros Adhnom Ghebreyesus is backing Tigray rebels

The United States government on Thursday indicated that it did not have any evidence the director general of the World Health Organization (WHO) Tedros...

As COVID-19 kills a quarter million Americans, Trump plays bad golf, tweets many lies, whines over election loss and obstructs Joe Biden

President Donald Trump spends time playing bad golf, tweeting many election fraud lies and obstructing President-elect Joe Biden, at a time when a quarter...

Ethiopia baselessly accuses WHO director general Tedros Adhnom Ghebreyesus of backing Tigray rebels

Ethiopia's military on Thursday baselessly accused the director general of the World Health Organization (WHO) Tedros Adhnom Ghebreyesus of supporting Tigray's rebels.The military claimed...

Trump campaign files appeal after Judge called legal claim in Pennsylvania “Frankenstein’s Monster” before dismissing it

President Donald Trump’s legal team on Sunday filed an appeal to a federal judge’s ruling that dismissed his campaign's effort to block the certification...

Biden to National Governors Association’s executive committee: “I will be your partner in the White House”

U.S. President-elect Joe Biden told the National Governors Association's executive committee on Thursday he will be their partner in the White House against the...

Biden announces foreign policy and national security team, including Blinken as Secretary of State, Mayorkas as Secretary of Homeland Security and Kerry as envoy on climate

U.S. President-elect Joe Biden on Monday announced key members of his foreign policy and national security team, including Antony Blinken as Secretary of State;...

Linda Thomas-Greenfield: “America is back. Multilateralism is back. Diplomacy is back.”

Linda Thomas-Greenfield, who has been nominated by President-elect, Joseph R. Biden Jr., to serve as the United States Ambassador to the United Nations, on...

Biden says he opposes guarded border between Ireland and Northern Ireland

U.S. President-elect Joseph R. Biden Jr. on Tuesday said he opposed a guarded border between Ireland and Northern Ireland.Mr. Biden spoke briefly with reporters...

Biden says he’s ready to meet with Trump if asked, has not yet received intel briefings

U.S. President-elect Joseph R. Biden Jr. on Tuesday said he was ready to meet with outgoing President Donald J. Trump if asked.“Of course I...

Black media highlight selection of Thomas-Greenfield and Shuwanza Goff in Biden-Harris administration

President-elect Joe Biden on Monday announced several historic nominations and appointments to key cabinet and White House posts, including two black women and several...

Incoming U.S. Secretary of State Antony Blinken indicates Trump’s “America First” policy is over

President Donald Trump's "America First" policy is over, incoming U.S. Secretary of State Antony Blinken indicated on Tuesday.In his acceptance speech in Wilmington, Delaware,...

Biden: America is back, ready to lead the world

U.S. President-elect Joseph R. Biden Jr. on Tuesday introduced key members of his foreign policy and national security team in Wilmington, Delaware, saying "America...

In their own words: Read full remarks by national security and foreign policy nominees and appointees

Remarks as Prepared for Delivery by Nominee for Secretary of State, Antony Blinken in Wilmington, DelawarePresident-elect Biden, Vice President-elect Harris: thank you for your...

Linda Thomas-Greenfield: “America is back. Multilateralism is back. Diplomacy is back.”

Linda Thomas-Greenfield, who has been nominated by President-elect, Joseph R. Biden Jr., to serve as the United States Ambassador to the United Nations, on Tuesday, delivered, perhaps, what was one of the strongest messages that echoed in many capitals around the world, a striking difference between the outgoing administration of Donald J. Trump, and the incoming Biden government."America is back. Multilateralism is back. Diplomacy is...
error: Alert: Content is protected !!
Share
Tweet
WhatsApp
Pin
Share