KIGALI (Reuters) – Rwanda’s economic growth rate will ease to 6.8 percent in 2016 from 7.1 percent in 2015, the World Bank said on Friday, noting the slow implementation of the country’s budget.
Rwanda maintained “steady growth and macroeconomic stability” for much of 2015, the bank said in a report, adding that the aid-dependent country had benefited from low oil prices.
“Downside risks have been increasing, both externally and domestically,” Yoichiro Ishihara, the bank’s senior economist for Rwanda, said in a statement. “On the domestic front, delayed execution of the budget and inadequate financing for development are of concern.”
Rwanda is one of the economies in the region that investors have hailed for solid fundamentals, including low debt and inflation.
The growth rate averaged 8.2 percent from 2006 to 2012 in the landlocked state, which has become a favourite with international investors two decades after the 1994 genocide.
(Reporting by Clement Uwiringiyimana; Editing by Edith Honan and Hugh Lawson)