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Rwanda: 2025 Article IV Consultation and Sixth Review Under the Policy Coordination Instrument-Press Release; and Staff Report

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  • International Monetary Fund

Abstract

The 2025 Article IV Consultation discusses that despite repeated shocks, Rwanda's economy has remained strong and resilient. The policy coordination instrument (PCI) has supported Rwanda’s reform agenda aimed to safeguard macroeconomic stability, promote sustainable and inclusive growth, and advance climate-resilient development. Rwanda’s economy remains strong and resilient, though higher fiscal and external pressures have challenged authorities’ effort to rebuild policy buffers. Credible fiscal consolidation—anchored in stronger domestic revenue mobilization, and spending efficiency—together with data-driven monetary policy and continued exchange rate flexibility are essential to safeguard macroeconomic stability and debt sustainability. Program performance under the PCI has been strong, with all quantitative targets met and reforms implemented. As the PCI comes to a successful completion, the policy focus remains on implementing priorities under the Second National Strategy for Transformation, including advancing inclusive, climate-resilient growth and major infrastructure projects. Structural reforms should continue to aim at unlocking inclusive and durable growth. Reforms to support external balance can facilitate the development of a competitive and dynamic export sector.

Suggested Citation

  • International Monetary Fund, 2025. "Rwanda: 2025 Article IV Consultation and Sixth Review Under the Policy Coordination Instrument-Press Release; and Staff Report," IMF Staff Country Reports 2025/319, International Monetary Fund.
    • Handle: RePEc:imf:imfscr:2025/319
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