- Rwanda’s economic growth projection has been revised upwards to 10.2 per cent from the earlier projection of 5.1 per cent for the year.
- In 2020, Rwanda’s economy had shrunk by 3.4 per cent due to the disruptions caused by the covid-19 pandemic.
- The projected growth is based on the recovery and growth of exports by 58.8 per cent in the third quarter of 2021 led by higher commodity prices, good performance of domestic manufacturing activities as well as horticulture.
After a month-long interaction and virtual meetings between the IMF mission, led by Haimanot Teferra, and the Rwandan authorities, Rwanda’s economic growth projection has been revised upwards to 10.2 per cent from the earlier projection of 5.1 per cent for the year. Rwanda’s economy had shrunk by 3.4 per cent due to the disruptions caused by the covid-19 pandemic.
The projected growth is based on the recovery and growth of exports by 58.8 per cent in the third quarter of 2021 led by higher commodity prices, good performance of domestic manufacturing activities as well as horticulture. Rwanda’s traditional exports such as coffee, tea, minerals, recorded a growth of 43.1 per cent while non-traditional exports like manufactured products and horticulture grew by 47.5%.
Unprecedented policy support, robust remittances, efforts to step up the vaccination rate as well as progress in structural reforms supported economic recovery in 2021 according to the IMF. The IMF assessment appreciated Rwanda’s stable banking system. IMF advised Rwanda to follow a monetary policy that is data-dependent, guided by inflation expectations, and supportive of the economic recovery. IMF advised the Rwandan authorities to closely monitor developments to ensure that monetary policy supports the recovery.
