Rwanda: Fifth Review Under the Policy Coordination Instrument and Request for the Modification of End-June 2025 Quantitative Target-Press Release; Staff Report; and Statement by the Executive Director for Rwanda

Author: International Monetary Fund. African Dept.

Volume/Issue: Volume 2025 Issue 127

Publication date: June 2025

ISBN: 9798229013918

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Topics covered in this book

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Exports and Imports , Economics- Macroeconomics , Money and Monetary Policy , Public Finance , fiscal consolidation program , Rwandan authorities , implementation framework , FX market functioning , Policy recommendation , PCI debt anchor , monetary policy transmission , Debt sustainability analysis , Fiscal consolidation , Debt sustainability , Global , Sub-Saharan Africa , Southern Africa , East Africa

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Summary

Despite a challenging external environment, Rwanda's economy grew by 8.9 percent in 2024, driven by robust performances in services, construction, and food crop production. Inflation stabilized within the central bank’s target range, underpinned by a combination of tight monetary policy and favorable food prices. Looking ahead, implementing priorities under the Government’s Second National Transformation Strategy will require significant financing, including for key investment projects such as the second phase of construction of the New Kigali International Airport and the expansion of RwandAir. The authorities remain firmly committed to advancing their ambitious structural reform agenda, supported by the Policy Coordination Instrument (PCI).