Rwanda says GDP growth expected to rise in 2024, still below 2022 figure

NAIROBI (Reuters) – Rwanda’s economy is expected to grow 6.6% in 2024, up from this year’s figure of 6.2%, the finance minister and central bank governor told the International Monetary Fund in a letter.

In February, Finance Minister Uzziel Ndagijimana had forecast economic growth of about 7.5% for the East African country in 2024 and 2025. The economy grew 8.2% in 2022.

“We foresee a temporary softening of economic growth, driven by needed tighter fiscal and monetary policies,” Ndagijimana and Central Bank Governor John Rwangombwa said in the Nov. 29 letter, made public late on Monday.

“On the demand side, private consumption and investment are expected to be the main growth drivers in the medium term as

fiscal consolidation ensues.”

In November, Rwanda’s central bank held its key lending rate at 7.5%, saying it saw inflation falling towards its target range of 2% to 8% by year-end.

External factors could cloud the outlook for growth, however, Ndagijimana and Rwangombwa said.

“A further deepening of geopolitical fragmentation, another spike in global energy, food, and fertiliser prices, or a steeper decline in trading partners growth would weigh on the outlook,” they said.

(Reporting by George Obulutsa; Editing by Jacqueline Wong and Clarence Fernandez)