The country had experienced a decline of -3.4% in 2020 due to the impact of the COVID-19 pandemic. In 2021, the economy rebounded strongly with a growth rate of 10.9%, followed by a growth rate of 6.8% in 2022.
The report highlights the challenging global economic conditions, including the COVID-19 pandemic, the cost-of-living crisis, and geopolitical tensions such as Russia’s invasion of Ukraine, which are likely to affect the global growth rate.
As a result, the global growth rate is projected to slow down from 6.0% in 2021 to 3.2% in 2022 and 2.7% in 2023.
However, the IMF report states that inflationary pressures are expected to ease in Rwanda, with the Consumer Price Index expected to reduce from 13.9% in 2022 to 8.2% by the end of 2023 and 5.0% in 2024.
This is good news for the country, as high inflation can have a negative impact on economic growth and the standard of living of the people.
While Rwanda’s economy is expected to experience a slowdown in growth compared to the previous year, the country’s projected growth rate of 6.2% in 2023 is still relatively strong and reflects the country’s resilience in the face of economic challenges.