...Government final consumption, of GDP --.- --.- --.- --.- --.- --.- --.- --.- --.- --.- --.- --.- Government final consumption, real growth y-o-y --.- --.- --.- --.- --.- -.- -.- -.- -.- -.- -.- -.- e/f = BMI estimate/forecast. ...We predict that fixed investment will expand at an average of -.- annually between ---- and ----. Due to attempts to attract private investment, spending by the private sector is expected to rise in the short term; however, this will not be enough to cover infrastructure plans and capital spending remains largely state-driven, leaving it vulnerable to political risk. We expect private investment levels will reach steady growth levels as government efforts to improve the busi- ness environment and develop its infrastructure begin to bear fruit. ...Rising incomes will also contribute to demand for consumer goods and manufactured items, which the domestic economy will struggle to produce in substantial quantities. Investment spending will cause large-scale imports of capital goods.
...Following a sharp slowdown in ----, the Rwandan economy looks to have returned to the robust levels of growth that made it a regional outperformer for much of the last decade. Focus on infrastructure development by the Rwandan government will continue to attract fixed investment into the country. ...Debt levels are set to rise on the back of a low risk debt status and increasing demand for debt financing due to lower grant funding. President Kagame running for a third term will spook foreign aid donors, despite overwhelming support for the decision in a December ---- referendum, which could lead to a faster than expected decline in grants. Surging population growth, low base effects and a government committed to market-friendly structural reforms will see Rwanda s economy expand rapidly over the coming years. ...Surging population growth, low base effects and a government committed to market-friendly structural reforms will see Rwanda s economy expand rapidly over the coming years. The country s difficult relationship with its neighbours poses the gravest threat to this forecast; a major international crisis could derail Rwanda s development hopes.
...
