IMF Staff Country Reports

Rwanda: First Reviews Under the Policy Coordination Instrument and the Arrangement Under the Resilience and Sustainability Facility, Request for the Modification of End-June 2023 Quantitative Targets, and Rephasing of Access Under the Resilience and Sustainability Facility-Press Release; Staff Report; and Statement by the Executive Director for Rwanda

June 6, 2023

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Rwanda: First Reviews Under the Policy Coordination Instrument and the Arrangement Under the Resilience and Sustainability Facility, Request for the Modification of End-June 2023 Quantitative Targets, and Rephasing of Access Under the Resilience and Sustainability Facility-Press Release; Staff Report; and Statement by the Executive Director for Rwanda, (USA: International Monetary Fund, 2023) accessed December 22, 2024

Summary

Recent developments. Rwanda’s economy continued with fast-paced post-pandemic growth in 2022, but macroeconomic imbalances have emerged. Strong output in manufacturing and services sectors more than offset weaker agricultural production and construction activity. Rising food prices and strong domestic demand fueled by high credit growth partly contributed to a persistent inflation which stood at 19.3 percent in March. Robust import demand coupled with high commodity prices and tightening global financing conditions have weakened Rwanda’s external position. The uncertain external environment and the reduced prospects for external concessional financing are compounding the challenges from the legacy of the pandemic. The authorities are committed to implementing frontloaded fiscal policy adjustment, while the National Bank of Rwanda stands ready to take further actions to anchor inflation expectations. The outlook is subject to high uncertainty, mainly stemming from deepening geopolitical fragmentation, volatility in global energy and fertilizer prices, a steeper-than-projected decline in trading partners growth, or a funding squeeze.

Subject: Climate change, Climate finance, Environment, Fiscal risks, Inflation, International organization, Monetary policy, Natural disasters, Prices, Public financial management (PFM)

Keywords: Climate change, Climate finance, Climate policy agenda, Deanchoring inflation expectation, Fiscal risks, Food inflation, Global, Inflation, Monetary policy stance, Natural disasters, RSF disbursement

Publication Details

  • Pages:

    98

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Country Report No. 2023/198

  • Stock No:

    1RWAEA2023001

  • ISBN:

    9798400242052

  • ISSN:

    1934-7685

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