Burundi’s Economy Projected To Grow 4.3% in 2024, Driven By Agriculture

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News in brief:
The IMF predicts a positive economic outlook for Burundi in 2024, with a growth rate of 4.3%, citing factors such as an improved agriculture sector and increased investment.
– It acknowledges the country’s recovery from economic challenges in 2023, attributing the positive trajectory to ongoing reforms, improved foreign exchange reserves, and foreign support.

The International Monetary Fund (IMF) forecasts a positive outlook for Burundi’s economy in 2024, predicting a growth rate of 4.3% from 2.7% in 2023.

This anticipated acceleration is attributed to several factors, including strong agricultural production, and increased investment.

Also, the IMF reports that Burundi’s agriculture reliant economy is expected to be bolstered by a robust performance in tea and coffee exports. It praised ongoing reforms in the country and productive investments that are creating a favourable environment for economic activity.

The positive outlook is a welcome relief for the country which had faced serious economic headwinds in 2023 caused by fuel shortages, global economic factors like the effects of the Russia-Ukraine conflict, and rising food and fuel prices.

Yet, some positive developments emerged in 2023. The IMF noted that these positive events include resumed financial support to the East African country, by the European Union and the United States, improved foreign exchange reserves (Burundi’s foreign exchange reserves reached $96.4 million by the end of 2023, providing approximately 0.8 months of import cover), and additional sources of income by way of remittances from Burundians living abroad and gold exports.

Meantime, with a projected growth rate of 4.3% in 2024, Burundi’s economy appears to be on a positive trajectory. The IMF’s forecast highlights the crucial role of agriculture, productive investments, and ongoing reforms in driving economic expansion.

Joseph Akahome
Joseph Akahome
Joseph O Akahome (OJ) is a writer, with a Bachelor of Arts degree in English and Literature from the University of Benin. He is an avid agriculturist, with a bias for poultry and an insatiable appetite for chicken wings. When he is neither reading nor researching, he likes to spend recreational time playing board games, or swimming in serene forested lakes.

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