HomeNewsIMF sees stronger Burundi growth, high inflation should ease

IMF sees stronger Burundi growth, high inflation should ease

-

NAIROBI – Burundi’s economy is expected to grow by 4.5 percent in 2013 from a projected 4.2 percent this year, rising to 5.5 percent in 2015, the International Monetary Fund said.

The IMF said in a statement issued late on Thursday that authorities may need to tighten monetary policy if inflationary pressures persisted.

Year-on-year inflation eased to 17.3 percent in June from 22.5 percent a month before, as food prices rose more slowly.

Burundi is enjoying relative peace since emerging from a decade-long civil war in 2005, but attacks on civilians and security forces have risen, raising fears of a new rebellion.

Its economy is heavily dependent on tea and coffee exports.

The Washington-based fund called for “further monitoring of risks to the financial sector stemming from rising interest rates and an unfavourable external environment”.

The IMF predicts inflation will drop to 14.7 percent at the end of this year and fall to 8.4 percent at the close of 2013.

The central African country suspended taxes on basic food imports in May to provide relief for citizens hit by soaring prices of essential commodities.

Recent Posts

Stories you will enjoy

Recommended reading