In-Depth Analysis
Rwanda
The small East African nation has emerged as one of the continent’s bright spots in recent years. The country boasts a strong GDP growth outlook and is among the fastest-growing economies in Africa, thanks to good governance and accountable political institutions. An attractive business environment means the country enjoys significant foreign investor interest.
The latest batch of national accounts data portrays an economy that has been put under tremendous strain during Q2. Rwanda’s economy has not endured a contraction of this magnitude in almost 25 years. Industry and services were the hardest hit, but we expect to see a notable rebound in H2 2020. Our initial prediction was that the economy would eke out a slight gain this year, but we have revised our forecast and now expect to see a contraction of 1.9%. There are few threats to regime stability over the short term; however, the economic impact of the Covid-19 pandemic may alter public sentiment over time. Developments in neighbouring countries remain a lingering threat. (Source: Rwanda Quarterly Update, published October 2020.)
Macroeconomic Data
(2019)
|
Fiscal Balance (as a % of GDP) |
-5.5 |
|
Consumer Price Index (% change y-o-y, avg) |
3.4 |
|
Current Account Balance (as a % of GDP) |
-8.8 |
|
Real GDP (annual % change) |
9.4 |
|
GDP per Capita, US$ |
801.7 |
|
Import Cover (months) |
4.7 |
|
Population, million |
12.6 |
| Total External Debt (as a % of GDP) |
58.6 |