An agreement was recently concluded between the International Monetary Fund (IMF) and Rwanda on policies that could support completion of the seventh and second reviews of the country’s economic development programmes.
Completing a two-week visit for consultations with the government in Kigali, an IMF team said the Board is scheduled to consider the seventh and second reviews of Rwanda’s PSI- and SCF-supported programmes in July 2017.
According to the IMF staff team leader, Laure Redifer, Rwanda’s economy continues to perform well, with strong implementation of its IMF-supported programme.
“Growth in 2016 was 5.9 percent, down from 2015, but comparing favourably to growth in the subcontinent, which averaged just 1.4 percent – the lowest in two decades,” Redifer said in a statement.
Deceleration of growth in Rwanda was primarily attributable to the drought’s impact on agriculture, as well as completion of large construction projects and policy adjustment to address growing external imbalances.
“The IMF team anticipates that growth should recover gradually over the course of 2017, owing to good rains and expanding domestic production. Food-driven inflation peaked in early 2017, and should decelerate as food supply constraints recede,” Redifer pointed out.
Rwanda’s development policies under Vision 2020 and Economic Development Poverty Reduction Strategies I and II have enabled the country to make nascent but tangible progress in moving from lower value-added to higher value-added economic activities, fostering structural transformation.