Moody’s Rating forecasts Rwanda’s strong growth prospects despite vulnerability to external shocks

Moody’s Ratings, one of the leading global credit rating agencies, has maintained Rwanda’s credit score at B2 with a stable economic outlook following a recent assessment. This decision reflects the anticipated robust economic growth in Rwanda and ongoing fiscal consolidation efforts, including initiatives to boost domestic revenues.

The agency’s stable outlook highlights Rwanda’s strong growth prospects, solid institutions and governance, a proven track record of policy execution, and access to concessional funding. However, it also acknowledges vulnerabilities to external shocks.

In a statement released on September 25, 2024, Moody’s projected that Rwanda’s real GDP is likely to grow by 8% over the 2024-25 period, with inflation expected to remain contained at around 5-6%. The agency noted that the current account deficit ( 10-12% of GDP ) will continue to reflect  imports of capital goods driven by the implementation of development projects. Country’s foreign exchange reserve buffers, will remain adequate (4.7 months of imports as of the end of June 2024).

The reaffirmation of Rwanda’s credit rating underscores the country’s proactive economic policies, strong growth prospects, and resilience in the face of challenges, positioning Rwanda favorably for continued economic stability and progress. (End)

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