Despite a robust growth of 6.3% in the second quarter of 2023, Rwanda faces numerous challenges. These include increased food prices, global geopolitical tensions, and tight global financing conditions, in addition to the environmental crises. Substantial post-flood reconstruction costs are projected at 3% of GDP over the next five years.
To address these issues, a range of measures are being implemented. These include fiscal consolidation, proactive monetary policy, exchange rate adjustment, digital delivery of public services, enhanced efficiency of public investments, and nominal exchange rate flexibility. These measures are aimed at controlling inflation and improving debt sustainability.
Furthermore, amidst tightening global financing conditions and the aftermath of the COVID-19 pandemic, policies for second reviews of Rwanda’s existing Policy Coordination Instrument and a Resilience and Sustainability Facility program have been defined.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Source: Economy - investing.com
