[amakurunamateka] Rwanda Economic Update: , June 2015 : Financing Development

 

https://openknowledge.worldbank.org/handle/10986/22364

Rwanda Economic Update, June 2015 : Financing Development

Growth recovery in 2014 is certainly good news. This time last year, we estimated the 2014 growth rate at 5.7 percent. Against all odds, the economy grew by 7 percent. However,growth outlook is not entirely bright. While the oil price decline has brought a positive impact on inflation and trade, recent economic indicators show some weaknesses. Also, global risks (e.g.,an increase in US interest rate, slowdown of Chinese and Euro economies, and an appreciation of the US dollar) are emerging. In the medium to long-term, Rwanda's economic resilience will not be achieved without keeping high investment rates. However, the current investment model (high public investment funded by aid) is not likely to be sustainable; given capacity constraints to maintain high public investment and possible decline in aid relative to GDP in the medium-term. Finding alternative sources of development financing is a key determinant of future growth. Development of the financial sector is critical to mobilize both domestic and foreign saving for financing development. This is the message of the Eighth Edition of theRwanda Economic Update (REU).

Citation

"World Bank Group. 2015. Rwanda Economic Update, June 2015 : Financing Development. World Bank, Washington, DC. © World Bank. https://openknowledge.worldbank.org/handle/10986/22364 License: CC BY 3.0 IGO."

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http://hdl.handle.net/10986/22364

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2015-06

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World Bank Group

 

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