Rwanda's economic growth drops by 4.6% -IMF

The International Monetary Fund on Wednesday in Abidjan said that the economic growth in Rwanda dropped to 4.6 per cent in 2013.

Mr Palo Drummond, the Head of the IMF team to Kigali between March 25 and April 6 stated this in a report at the end of the team’s mission.

He said that the team, which went to review Rwanda’s performance under the Policy Support Instrument met with critical economic stakeholders in the country during the visit.

“Rwanda’s economic growth dropped to 4.6 per cent in 2013, reflecting weak agriculture as well as aid-related delays in the implementation of government financed projects.

“Inflation in Rwanda has been subdued, reflecting weak activity and low food and fuel import prices,” he said.

According to Drummond, Rwanda’s performance under the IMF-supported programme, however, remained satisfactory.

He said that structural reforms advanced as planned while the government was moving ahead with the much needed revenue mobilisation efforts.

“For 2014, economic growth is projected at six per cent, driven by a rebound in agriculture and a pick-up in the services sector.

“This will require firm implementation of the government’s investment programme. Inflation is expected to be about five per cent at end of 2014,” he said.

Drummond said the mission reached a preliminary agreement with the authorities on economic policies for the remainder of 2014 to support near-term growth and strengthen resilience to shocks.

“It seeks in particular to ensure that the 2014/2015 budget, to be presented to parliament in June, falls in line with PSI objectives.

“It also seeks to sustain revenue mobilisation efforts, adjust current spending to available resources, minimise domestic financing, and protect priority spending,” he said.

The News Agency of Nigeria reports that the PSI is an IMF instrument designed for countries not needing balance of payments financial support.