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Rwanda economy

Rwanda: Resilience in the face of adversity

Birgit Hansl's picture

In times of regional and global turbulence, Rwanda’s economy has demonstrated remarkable resilience. A new Rwanda Economic Update shows why.

In 2011, growth will reach 8.8 percent, inflation has been contained below 10 percent and the exchange rate remains stable. This economic resilience reflects sound macroeconomic management.

Rwanda’s growth prospects for 2011 compare favorably with others in the region, but this outlook is contingent on three factors.  First, prudent macroeconomic management continues, inflation is at single digits and the exchange rate remains stable. 

Seeds for Higher Growth in Rwanda

Birgit Hansl's picture

Rwanda’s economy is growing at a healthy rate--7.5 percent in 2010, two percent higher than the East African Community (EAC) and even more than Sub Saharan Africa (SSA).

During 2010, the services and industrial sectors progressed in their recovery, while growth in the agricultural sector slowed down marginally.  The country’s macroeconomic framework was remarkably stable, given the difficult external post-crisis environment and Rwanda’s position as a highly import-dependent, land-locked country. This was mainly achieved through a prudent fiscal stance with strong focus on priority expenditures, assisted by continued grant financing from donors.