Rwanda Economic Update, June 2015 : Financing Development
Growth recovery in 2014 is certainly good news. This time last year, we estimated the 2014 growth rate at 5.7 percent. Against all odds, the economy grew by 7 percent. However,growth outlook is not entirely bright. While the oil price decline has b...
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| Format: | Report |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2015
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| Online Access: | http://documents.worldbank.org/curated/en/2015/07/24743923/financing-development-role-deeper-more-diversified-financial-sector http://hdl.handle.net/10986/22364 |
| Summary: | Growth recovery in 2014 is certainly
good news. This time last year, we estimated the 2014 growth
rate at 5.7 percent. Against all odds, the economy grew by 7
percent. However,growth outlook is not entirely bright.
While the oil price decline has brought a positive impact
oninflation and trade, recent economic indicators show some
weaknesses. Also, global risks (e.g.,an increase in US
interest rate, slowdown of Chinese and Euro economies, and
an appreciationof the US dollar) are emerging. In the medium
to long-term, Rwanda’s economic resiliencewill not be
achieved without keeping high investment rates. However, the
current investmentmodel (high public investment funded by
aid) is not likely to be sustainable; given
capacityconstraints to maintain high public investment and
possible decline in aid relative to GDP inthe medium-term.
Finding alternative sources of development financing is a
key determinantof future growth. Development of the
financial sector is critical to mobilize both domestic
andforeign saving for financing development. This is the
message of the Eighth Edition of theRwanda Economic Update (REU). |
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