IMF Says Rwanda Economy to Expand by 6 Percent This Year

Rwanda’s economy is expected to grow by 6 percent this year from 4.6 percent in 2013, while inflation will remain contained, the IMF said.  Growth in the east African nation slipped from 7.3 percent in 2012 after donors cut aid over Rwanda’s alleged involvement in a conflict in the neighbouring Democratic Republic of the Congo.

“Downside risks to the outlook centre around delays in government financed projects and a weak second season for agriculture,” the IMF said in a statement issued late on Friday.  The Washington-based fund said inflationary pressures had been subdued and urged the government to steer policy carefully to avoid fiscal imbalances in the future.  The IMF said, “The need to support growth and preserve the level of foreign reserves requires a cautious fiscal stance through maintaining priority spending.”

Source: CNBC Africa