S&P turns Rwanda outlook to stable

S&P said it revised its outlook for Rwanda to stable from negative and affirmed its B+ ratings.

“Rwanda's economy rebounded sharply in 2021-2022, and we expect it to maintain strong growth, despite choppy economic trends globally. We estimate economic growth of 8.2% in 2022, well above our prior expectation of 5.5%. In addition, we forecast average annual growth of 7.1% during 2023-2026. The country has also pursued fiscal consolidation, underpinned by a policy coordination instrument (PCI) program from the IMF. These factors, combined with inflows of concessional financing, should enable Rwanda to reduce its fiscal imbalances further through 2026,” the agency said in a statement.

S&P noted that despite the central bank raising interest rates by 200 basis points last year, inflation remains high and does not forecast it dropping to the 2%-8% rate until 2024.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.