Rwanda’s gross domestic product grew by almost 11% in 2021, largely due to its swift pandemic response and accelerated vaccination campaign, the International Monetary Fund said late Tuesday.
The economy rebounded after contracting 3.4% the year before, IMF mission head Haimanot Teferra, said in a statement.
However, the outlook for 2022 is clouded by Ukraine war effects and related uncertainties which are likely to put the economy under strain, the IMF mission said.
« Although the magnitude of the impact is difficult to foresee at this juncture, staff will revise growth projections down relative to the previous review, with risks tilted to the downside. » Ms. Teferra said.
Higher global energy and commodity prices will fuel inflationary pressure and widen the current account deficit further this year, Ms Teferra said.
The annual Inflation rate rose to 5.8% in February from 4.3% in January, driven by rising food and global energy prices, prompting the central bank to raise the key lending rate by 50 basis points to 5%, she said. “Policy priorities are to contain inflationary pressures and support the most vulnerable in the face of rising energy and food prices while preserving fiscal discipline, safeguarding financial stability, and staying the course with the reform agenda for strong and inclusive growth,” Ms Teferra said.
In December, Rwanda registered inflation of 1.9% on year, according to the country’s statistics bureau.
By George Mwangi
Subscribe to view notification of our daily news