The International Monetary Fund (IMF) has projected a notable upturn in Burundi’s economic performance, forecasting a 4.3% expansion in 2024, a significant leap from the 2.7% growth recorded in the previous year.
In a statement released by the IMF on Monday, the organization attributed the anticipated growth to several key factors, including robust agricultural production, increased productive investment, and ongoing reform efforts within the nation.
The IMF underscored the pivotal role of strong agricultural output, productive investments, and ongoing reforms in driving Burundi’s economic resurgence. The statement also highlighted the adverse impact of fuel shortages, which had dampened economic activity throughout 2023.
Burundi, with a population of 12 million, heavily relies on revenue generated from its agricultural sector, particularly from the cultivation of tea and coffee.
The nation’s economic landscape has been marked by challenges in recent years, including a shortage of hard currency following a 2015 political crisis that led to the suspension of aid from international donors. Additionally, the economy grappled with inflationary pressures resulting from the Russian-Ukrainian conflict in 2022, which triggered a surge in food and fuel prices.
In a positive development, the European Union agreed to resume financial support to Burundi, while the United States pledged aid, bolstering the country’s economic prospects.
Despite these challenges, Burundi saw a modest improvement in its foreign exchange reserves by the end of 2023, which stood at $96.4 million, equivalent to 0.8 months of import cover. The IMF noted that inflows from remittances and gold exports provided some relief to the country’s foreign currency reserves.
As Burundi looks ahead to 2024, the IMF’s positive growth forecast signals a potential turning point for the nation’s economy. With concerted efforts aimed at sustaining agricultural productivity, attracting investment, and implementing necessary reforms, Burundi is poised to capitalize on its economic potential and foster sustainable growth in the coming year.
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