Rwanda: First Reviews Under the Policy Coordination Instrument and the Arrangement Under the Resilience and Sustainability Facility, Request for the Modification of End-June 2023 Quantitative Targets, and Rephasing of Access Under the Resilience and Sustainability Facility-Press Release; Staff Report; and Statement by the Executive Director for Rwanda
IMF Staff Country Reports, June 6, 2023
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- Rwanda: First Reviews Under the Policy Coordination Instrument and the Arrangement Under the Resilience and Sustainability Facility, Request for the Modification of End-June 2023 Quantitative Targets, and Rephasing of Access Under the Resilience and Sustainability Facility-Press Release; Staff Report; and Statement by the Executive Director for Rwanda
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Bibliographic details
- Published: June 6, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400242052.002
Overview
- Presents Rwanda’s First Reviews under the Policy Coordination Instrument and the Arrangement under the Resilience and Sustainability Facility, Request for the Modification of End-June 2023 Quantitative Targets, and Rephasing of Access under the Resilience and Sustainability Facility.
- Notes robust growth in 2022, but overlapping crises have eroded policy buffers.
- Highlights high uncertainty for the outlook and added spending pressures from the costs of the humanitarian response and reconstruction of damaged infrastructure after recent disastrous floods.
- Commends Rwanda’s commitment to building socio-economic resilience and efforts to transition to greener growth, urging these efforts be sustained.
Macro outlook and risks
- Robust growth in 2022 contrasted with weakened policy buffers due to overlapping crises.
- The outlook is subject to high uncertainty.
- Recent disastrous floods have generated additional fiscal pressures via humanitarian response and reconstruction needs.
- Inflationary pressures and external stability are key risks requiring policy action.
Policy findings and recommended mix
- Immediate policy priorities should focus on implementing a strong policy mix to prevent macroeconomic imbalances from becoming entrenched.
- Fiscal policy:
- Calls for a front-loaded fiscal policy adjustment to contain imbalances and address spending pressures.
- Monetary policy:
- Recommends decisive monetary tightening to contain inflationary pressures.
- Exchange rate policy:
- Advises greater exchange rate flexibility to promote external stability.
- Structural priorities:
- Sustained commitment to building socio-economic resilience.
- Continued efforts to transition to greener growth.
Subject tags and keywords (as listed)
- Subject: Climate change, Climate finance, Environment, Fiscal risks, Inflation, International organization, Monetary policy, Natural disasters, Prices, Public financial management (PFM)
- Keywords: Climate change, Climate finance, climate policy agenda, deanchoring inflation expectation, Fiscal risks, food inflation, Global, Inflation, monetary policy stance, Natural disasters, RSF disbursement
Content in this bundle
- 1rwaea2023001 - Executive Summary