The budget deficit of Bujumbura (one of Burundi’s economic hubs), is anticipated to be reduced due to sustained attempts to cut current spending, which wages and subsidies have mostly driven up. This year’s economic growth is also anticipated to be higher thanks to improved tax collection.
The IMF noted in a statement following an assessment of Burundi’s performance under the 38-month $271 million Extended Credit Facility (ECF) agreement accepted in July that the country will see faster development despite several obstacles thanks to other macroeconomic reforms and regulated fiscal spending.
“Economic growth is expected to slightly accelerate in 2023, driven by the secondary and tertiary sectors, as the Burundian economy continues to recover,” said IMF’s Burundi Mission Chief Mame Astou Diouf.
The cost of living in Burundi continues to be relatively high in comparison to most economies across the world, which have begun to recover from the shocks caused by the Ukraine conflict and pandemic crises. A number of obstacles is now hampering Burundi’s economic recovery.
According to the global lender, delayed rainfall near the end of last year increased food inflation in the nation, which has since been made worse by structural supply chain problems brought on by fuel shortages this year and a lack of available foreign currency.
The country’s overall inflation rate has also been high, averaging 29 percent in the eight months leading up to August 2023 and being mostly driven by rising food costs and a weaker currency.
Source : BI