Rwanda: Third Reviews under the Policy Coordination Instrument and the Arrangement under the Resilience and Sustainability Facility, and the First Review under the Standby Credit Facility Arrangement-Press Release; and Staff Report
IMF Staff Country Reports, May 28, 2024
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- Rwanda: Third Reviews under the Policy Coordination Instrument and the Arrangement under the Resilience and Sustainability Facility, and the First Review under the Standby Credit Facility Arrangement-Press Release; and Staff Report
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Bibliographic details
- Published: May 28, 2024
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400277511.002
Overview
- 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 remains strong, bolstering Rwanda's resilience to climate shocks.
- Despite challenging external conditions and ongoing fiscal consolidation, Rwanda's economy maintains robust growth.
Program performance and reforms
- PCI/SCF:
- Strong program performance reported.
- Successful implementation of reforms on social safety nets.
- Successful implementation of reforms on spending rationalization.
- RSF:
- Continued strong progress on the climate agenda.
- RSF reforms bolster resilience to climate shocks and aim to position Rwanda as a regional leader in climate initiatives.
- Sustained RSF reform momentum intended to help catalyze climate financing from development partners and the private sector.
Macroeconomic stance and outlook
- Policy priorities going forward:
- Prioritize macroeconomic and financial stability.
- Prioritize fiscal sustainability and the restoration of buffers.
- Monetary policy guidance:
- Monetary policy should anchor inflation around the center of the target band.
- Continued exchange rate flexibility recommended to help absorb external shocks and support current account adjustment.
- External environment:
- Noted as challenging, while growth remains robust amid fiscal consolidation.
Key recommendations and implications
- Restore fiscal buffers while maintaining fiscal consolidation.
- Maintain monetary policy stance that anchors inflation around the center of the target band.
- Continue exchange rate flexibility to facilitate external adjustment.
- Continue and deepen RSF reforms to:
- Enhance resilience to climate shocks.
- Catalyze climate financing from development partners and the private sector.
- Strengthen Rwanda’s regional leadership in climate initiatives.
Content in this bundle
- 1rwaea2024001