UN Report Forecasts Rwanda to Lead Economic Growth in East Africa in 2024

By THE INSPIRER.

In the latest United Nations ‘World Economic Situation and Prospects 2024’ report, Rwanda emerges as the front-runner for economic growth in East Africa, with a projected expansion to seven percent in 2024, up from 6.3 percent in 2023. This positions Rwanda at the top in East Africa and secures its third place ranking among African countries with high economic growth prospects.

The UN report paints a cautious global economic outlook for the near future, anticipating a decline in global economic growth from 2.7 percent in 2023 to 2.4 percent in 2024. The persistently high-interest rates, escalating conflicts, sluggish international trade, and rising climate disasters are identified as significant challenges to global growth.

UN Secretary-General António Guterres emphasizes the need for decisive action in 2024 to overcome these challenges. He calls for substantial investments to drive sustainable development, climate action, and to put the global economy on a more robust growth path.

Despite unfavorable external conditions for African economies due to a weak global economic outlook and limited external financing opportunities, the report suggests a moderate improvement in GDP growth in Africa, with an average of 3.5 percent in 2024.

The economic growth outlook for East Africa is optimistic, projecting a growth rate of 5.5 percent in 2024, up from five percent in 2023. Concurrently, inflation is expected to decrease from 13.5 percent in 2023 to 10.5 percent in 2024 and further to 8.5 percent in 2025.

Rwanda, securing the third position among the top ten African countries expected to experience high economic growth in 2024, follows Libya and Senegal with growth rates of 7.6 and 9.2 percent, respectively.

In East Africa, Rwanda’s anticipated leading economic performance in 2024 is expected to be followed by DR Congo, Uganda, and Tanzania.

Economic growth, measured by Gross Domestic Product (GDP), reflects the total market value of finished goods and services produced within a country during a specific period, serving as a crucial indicator of a country’s economic health.

The report also touches on inflation projections, highlighting a positive trend. Rwanda, with an inflation rate averaging 14.7 percent in 2023, is anticipated to witness a deceleration to 7.2 percent in 2024 and further to 5.4 percent in 2025.

Data from the National Institute of Statistics Rwanda (NISR) suggests a gradual easing of consumer prices, reaching 9.2 percent in November 2023, marking the first time inflation has fallen below double digits in the year.

The National Bank of Rwanda aims to bring inflation back within the acceptable range of two percent to eight percent in 2024. The high consumer prices are attributed to poor agriculture performance and imported inflation in recent years.

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