Connect with us

News

IMF Delegation Commends Rwanda’s Economic Performance

Published

on

A delegation led by Ms. Catherine McAuliffe from International Monetary Fund (IMF) has concluded their visit to Rwanda on Thursday March 29, which started on March 15. During their tour, they conducted discussions which mostly focused on the fourth review under the Policy Support Instrument (PSI).

The mission met with Minister of Finance and Economic Planning Hon. John Rwangombwa, Governor of the National Bank of Rwanda Amb. Claver Gatete, senior officials, as well as representatives of the private sector and development partners.

At the conclusion of the mission in Kigali, Ms. McAuliffe issued the following statement:
“Rwanda’s recent economic performance has been strong. The growth of real gross domestic product (GDP) exceeded 8 percent in 2011 and is projected to be in the range of 7.5–8 percent for 2012 and 2013. Consumer price inflation has been steady at close to 8 percent in the last few months—the lowest in the region—helped in part by the reduction in fuel taxes and good harvest. A larger-than-expected balance of payments surplus in 2011 resulted from strong export performance, as well as from a large increase in official and private sector inflows.

The overall fiscal balance for the first half of 2011/12 was better than projected (by about 1 percent of GDP), mainly reflecting higher donor support funds (grants and loans) as well as delays in implementing domestically-financed capital projects.

Performance under the IMF-supported program continues to be strong. All end-December 2011 quantitative targets under the program were met. Structural reforms are advancing, with notable progress in public financial management and analysis of revenue potential. The delays in the areas of debt management and fiscal reporting are currently being addressed.

The authorities and the mission agreed, on economic policies for the last year of the current PSI. The 2011/12 budget is expected to remain on track, with higher-than-expected budget support to be allocated to finance additional current and capital expenditure. In 2012/13, to make room for needed wage increases in the public sector, the authorities will reduce purchases of goods and services. Monetary policy will need to ensure that inflationary pressures remain at bay.

Also, the authorities and the mission discussed downside risks to the outlook, which stem from weaker global demand and higher oil prices. In the event of a revenue shortfall, the government stands ready to delay non-priority spending to preserve the fiscal consolidation gains of recent years. In the face of rising fuel prices, the authorities will rely primarily on monetary policy to contain inflation.
“The IMF\’s Executive Board is expected to consider the fourth PSI review in June 2012,” she said.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Amethyst Streams
App3 weeks ago

5 Reasons Why Amethyst Streams is the Ultimate Destination for Relaxation and Healing

Casting Room Backstage
Entertainment3 weeks ago

5 Essential Elements for a Successful Casting Room Backstage

Ibomma UK
Entertainment3 weeks ago

5 Must-Watch Movies on Ibomma UK for Telugu Movie Lovers

Piperine
Health & Fitness3 weeks ago

10 Surprising Health Benefits of Piperine You Didn’t Know About

Phone Number
Tech3 weeks ago

5 Reasons Why You Should Save This Phone Number Now

Beliktal
Travel3 weeks ago

Uncovering the Mysteries of Beliktal: 10 Hidden Gems to Explore

James Joyce
Life Style4 weeks ago

5 Fascinating Facts About James Joyce and His Literary Style “Joyciano”

Literotica
Life Style4 weeks ago

The Top 10 Literotica Tags to Spice Up Your Reading List

Emergency Hotline
App4 weeks ago

10 Tips to Remember When Calling the Emergency Hotline (02045996818)

Red and White Magazine
Life Style4 weeks ago

The Ultimate Guide to Red and White Magazine: Everything You Need to Know

Mangatoto
Entertainment4 weeks ago

Exploring the World of Manga: A Guide to Mangatoto

HQFlix
App4 weeks ago

HQFlix: Your Gateway to Premium Streaming Content

Chaleturi
Home and Garden4 weeks ago

Chaleturi: The Ultimate Mountain Retreat Experience

Live Sports
App1 month ago

Discover the Benefits of Watching Live Sports with Streameast

Martie Allen
Celebrity1 month ago

The Untold Story of Martie Allen: From Personal Life to Career Success

Villains
Entertainment1 month ago

The Shocking Truth Revealed in Chapter 36: I’m Being Raised by Villains

Unsuccessful Draft Pick
Sports1 month ago

The Highs and Lows of Sports: Reflecting on an Unsuccessful Draft Pick

Pata Seca
Food1 month ago

Discover the Delicious Tradition of Pata Seca: A Guide to This Mexican Delicacy

TOTK Techniques
Gaming1 month ago

Level Up Your Gaming Skills with TOTK Techniques for PC Players

Utsunomiya
Travel1 month ago

Shipn Utsunomiya: Unraveling the Hidden Gems of this Charming City

Trending