Why IMF Raised Rwanda’s Economic Growth Forecast

An aerial view of Kigali Special Economic Zone. Rwanda’s economy is expected to grow at 8.5%. Emmanuel Kwizera

By Collins Mwai

The International Monetary Fund has revised Rwanda’s economic growth projections to 8.5 per cent from 7.8 per cent.

While winding up their two-week mission in Kigali, officials from IMF said that economic activity in the first half of the year had outpaced expectations with real Gross Domestic Product growing by 10.3 per cent in the first half of the year.

With the second half of the year still fast-paced, the IMF projects that growth will be higher than was projected.

“The uptick in construction reflects both public infrastructure projects and private investment. Growth is expected to remain strong, 8.5 per cent in 2019 and around 8 per cent for the next 2 or 3 years,” Laure Redifer the mission’s chief noted.

Among the major construction projects that she noted had kept growth high include construction of the Kigali Arena, energy and sanitation projects, road construction projects as well as private sector projects such as commercial buildings and residential.

The growth in the first half of the year was driven by the service sector due to growth in the tourism and transport sectors…

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