Rwanda’s economy is expected to grow by 7.5 percent in 2015 and 7.7 percent in 2016, according to the latest Rwanda Economic Update published on Wednesday by the World Bank.
“Falling oil prices are expected to contribute to lower inflation but also to a more stable exchange rate, an improved balance of payments, and smaller electricity subsidies. Moreover, economic stability in turn increases policy flexibility,” said Carolyn Turk, the World Bank, Country Manager for Rwanda.
The updated focuses on Rwanda’s agriculture and its impressive gains over recent years.
However, it describes how risks such as pests, adverse weather, plant diseases, and price volatility have created significant economic losses that could have been avoided.
“Agricultural risks are low in Rwanda compared to neighboring countries. Nevertheless, they can have important consequences for sector productivity, growth, and the government’s efforts to transform the sector,” said Toru Nishiuchi, the World Bank’s Economist and the Task Team Leader for the Economic Update.
According to Nishiuchi, risks to the agricultural sector caused production losses worth $1.2 billion between 1995 and 2012, about 2.2 percent of Rwanda’s total annual agricultural production.
These risks do not have to turn into losses-identifying these risks allows the government to manage them effectively through a set of prioritized interventions, Nishiuchi added.
APA News
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