Macroeconomic Forecast Donor inflows feed growth, inflationary pressure

Rwanda is in the unusual yet enviable position of having to manage increased donor inflows and indeed, we are forecasting a mild uptick in economic growth, with a full-year 2008 target of 4.7% growth, up from 4.5% in 2007. Inflation will remain a key concern, particularly in the context of the projected fiscal expansion in 2008. Efforts to bring down inflation should be assisted in 2008 by a fall in food prices as supplies become more readily available domestically and fewer imports are required. As such, we are retaining out forecast for 2008 core inflation at 5.0%.

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