Our Rwandanauthorities would like to express their gratitude to Staff, Management and the Executive Board for the Fund’s continued support to their policy and reform agenda. They value the close cooperation with the Fund and appreciate the constructive discussions held with staff in Kigali in the context of the 2019 Article IV Consultation and the negotiations for the Policy Coordination Instrument (PCI).
Amid a challenging environment and exposure to exogenous shocks, Rwanda’s economic performance continues to be strong thanks to the authorities’ commitment
, monitoring and endorsement of their policies. PSIs are voluntary and demand driven (see Public Information Notice No. 05/145. )
Following the Executive Board’s discussion on Rwanda, Mr. Naoyuki Shinohara, Deputy Managing Director and Acting Chair, stated:
“The Rwandanauthorities are to be commended for their satisfactory implementation of the economic program supported by the Policy Support Instrument, carried out against a challenging global economic environment. Economic growth has continued to be strong, inflation remains contained, and poverty has further
Recent economic developments. Despite a sizeable policy response, the COVID-19 pandemic continues to impact Rwanda’s economy and social fabric, with output contracting by 3.4 percent in 2020. The vaccine rollout is expected to help counter the pandemic and support the economic recovery, but risks remain elevated. While progress was made in several reform areas, some envisaged reforms are being delayed. The authorities requested the extension of the program by one year to make progress on ongoing reforms and policies to support the economic recovery and meet their fiscal consolidation and debt objectives. Rwanda received debt relief under the third tranche of the Catastrophe Containment and Relief Trust (CCRT).
Rwanda’s medium-term outlook is positive, supported by the authorities’ large policy package to respond to the evolving COVID-19 pandemic and their continued commitment to the PCI in a challenging environment. Economic recovery is underway with easing of restrictions supported by faster vaccination rates since July. GDP growth is projected at 10.2 percent in 2021 and inflation remained subdued. But Rwanda’s remarkable economic and social progress over the last two decades faces a significant setback, with poverty, unemployment, and gender inequalities on the rise. These pandemic scars, if not addressed, risk reversing hard-won economic and social gains. With a large share of the population still unvaccinated and the emergence of new variants, risks to the outlook remain elevated.
1. Our Rwandanauthorities would like to express their gratitude to Management and the Executive Board for the Fund’s continued support. They also thank staff for their proactive engagement during these challenging times, which led to two timely disbursements under the Rapid Credit Facility (RCF-1 and RCF- 2) in April and June. The swift emergency financing was instrumental in supporting the authorities’ early response to the COVID-19 crisis and keeping on track the program backed by the Policy Coordination Instrument (PCI). This third review
On behalf of my Rwandanauthorities, I would like to express my appreciation to the Executive Board and Management for the quality of relations that the Fund maintains with Rwanda, and to staff for the constructive policy dialogue held during the last staff visit to Kigali and the discussions held during the 2008 Spring Meetings. My authorities share the view that the staff report accurately reflects the recent economic developments in Rwanda and the challenges that the economy faces. They remain grateful to the international community for its assistance in