Fitch Ratings has re-affirmed Rwanda’s Rating at ‘B+ stable outlook’, indicating a positive economic landscape with growth prospects. This reflects the country benefits from the concessional nature of debt, strong governance relative to peers, and robust official support.
Rwanda’s positive credit rating is significantly strengthened by its robust performance in political stability, adherence to the rule of law, and effective governance. These factors are deemed highly relevant by Fitch Ratings, underscoring their critical role in shaping the country’s creditworthiness.
Fitch forecasts GDP growth at 8.0% in 2024, declining to 6.7% in 2025-2026, driven by public investment and the Bugesera airport project. Inflation is expected to decrease to 4.5% in 2024, while the fiscal deficit is projected to narrow from 6.4% to 4.6% of GDP by 2026, despite government debt rising to 78.2% of GDP by 2025. The current account deficit is set to widen to 12.5% of GDP in 2024 but may narrow in subsequent years.
While Fitch has affirmed Rwanda’s ‘B+’ rating with a stable outlook, highlighting its strong growth potential, effective governance, and concessional debt profile, it also notes that persistent fiscal deficits, political stability concerns, and external vulnerabilities require further attention. (End)