Rwanda’s Ministry of Finance and Economic Planning has projected the economy to expand by 6.6 percent in 2024, buoyed by strategic government policies and robust domestic growth, this follows an impressive 8.2 percent growth in 2023, beating the initial estimates of 6.2 percent, according to the Ministry’s 2024-25 budget citizen’s guide.
According the budget guide, the Ministry sees the economy continue growing at the tune of 6.5 percent in 2025 and 6.8 percent in 2026, reflecting the nation’s resilience and strategic planning.
Since early 2023, Rwanda has experienced a notable decline in headline inflation, which fell from 20.7 percent in January 2023 to 6.4 percent in December 2023, and further to 4.9 percent by February 2024.
This significant reduction in inflation is attributed to a combination of favorable weather conditions boosting agricultural supply, the National Bank of Rwanda’s stringent monetary policies, and a decrease in global food prices. As a result, headline inflation is expected to stabilize at 4.9 percent in 2024.
The fiscal year 2024/2025 is set to witness total resources amounting to Rwf5.69 trillion. These funds will be sourced from domestic revenues through tax collections, other fees and fines, domestic financing sources, external grants from development partners, and external loans.
Total expenditure for the fiscal year 2024/2025 is also projected at Rwf5.69 trillion, with a significant portion allocated to recurrent spending, amounting to Rwf3.45 trillion reflecting 60.7 percent of the total budget.
Capital spending is projected at Rwf2.007 trillion, representing 35.3 percent of the total expenditure. Additionally, the budget includes Rwf39.8 billion for various equity and investment fund shares, Rwf60.7 billion for government policy lending, Rwf80 billion for other accounts payable, and an increase in deposits by Rwf51 billion.
“Rwanda’s fiscal and monetary policies are crucial in maintaining economic stability and fostering growth,” According to the guide. The government’s proactive measures have evidently played a pivotal role in steering the economy towards a path of sustained growth and stability.
The positive outlook for Rwanda’s economy is underpinned by its strategic initiatives and effective policy implementation. As global economic uncertainties persist, Rwanda’s approach could serve as a model for other nations aiming to achieve stable and sustained economic growth.
