IMF Staff Country Reports

This paper presents Rwanda’s Third Reviews under the Policy Coordination Instrument (PCI) and the Arrangement under the Resilience and Sustainability Facility (RSF), and the First Review under the Standby Credit Facility (SCF). Program performance under the PCI/SCF has been strong, with successful implementation of reforms on social safety nets and spending rationalization. Progress on the climate agenda under the RSF also remains strong, bolstering Rwanda's resilience to climate shocks. Despite challenging external conditions and ongoing fiscal consolidation, Rwanda's economy maintains robust growth. Going forward, the policy mix should prioritize macroeconomic and financial stability, fiscal sustainability, and the restoration of buffers. Monetary policy should anchor inflation around the center of the target band, while continued exchange rate flexibility will help absorb external shocks and support current account adjustment. Sustained reform momentum under the RSF will enhance the economy's resilience to climate shocks, position Rwanda as a regional leader in climate initiatives, and help catalyze climate financing from development partners and the private sector.