The headline inflation rate in Rwanda has declined steadily since January 2023 when the rate stood at 20.7%. By the end of the first quarter of 2023 the inflation rate had dropped to 19.3%.

In April 2023 the inflation rate dropped to 17.8% and declined further to 14.1 in May. By the end of July 2023 the rate was at 11.9%.

In August the rate increased slightly to 12.3% and 13.9% by the end of September. Since then the rate has been on a downward trend hitting 11.2% in October, 9.2% in November, 6.4% in December, 5.4% in January 2024 and 4.9% as of last month.

Speaking during the release of the Monetary Policy and Financial Stability Statement on Thursday, March 21, 2024, NBR Governor John Rwangombwa attributed the decline to improved fresh food supply resulting from a bumper harvest, monetary policy tightening, alleviated pressures on core inflation from international food prices as well as the easing trend recorded from global energy prices.

The governor said Rwanda’s economy is projected to remain strong and resilient with the country’s GDP expected to grow by 6.6% in 2024 after recording a remarkable growth of 8.2% last year.

According to the NBR boss, the growth is likely to be driven by different factors including continued good performance in all sectors including trade, tourism, travel services, construction and agriculture.

He, however, warned of potential risks and shocks such as the global geopolitical tensions including the Russia and Ukraine war, which could affect global prices of commodities, Red Sea disruptions and oil supply cuts. Climate change is also a huge risk that could affect global prices.

Similarly, global inflation is projected to continue declining, averaging 5.8% in 2024 and 4.4% in 2025.

According to the International Monetary Fund (IMF), the world economic growth is projected to stabilize at 3.1% in 2024 and 3.5% in 2025, while the Sub-Saharan Africa Economy is projected to stabilize at 3.8% in 2024 and 4.0% in 2025. This has been attributed to trade fragmentation and disruptions and climate change risks.

On the local financial sector outlook, the governor assured the general public and investors that the sector is projected to remain stable in 2024.

“The NBR will continue to monitor emerging risks such as climate risk and cyber security, to ensure a resilient financial system capable of contributing to the economic development of Rwanda,” Rwangombwa said.

In attendance were Jean-Chrysostome Ngabitsinze, the Minister Trade and Industry; Ildephonse Musafiri, the Minister of Agriculture and Animal Resources and members of parliament from both chambers.

Central Bank Governor, John Rwangombwa said that Rwanda’s economy is projected to remain strong and resilient with the country’s GDP expected to grow by 6.6% in 2024 after recording a remarkable growth of 8.2% last year.