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In a statement released by the fund on Monday, the IMF said “growth is projected to accelerate … supported by strong agricultural production, productive investment, and the ongoing reforms”. The fund added that f****uel shortages had hampered economic activity in 2023.
Burundi with a population of 12 million relies heavily on agriculture revenues, especially from tea and coffee.
The east African nation’s economy had experienced a shortage of hard currency after a 2015 political crisis that prompted donors to suspend aid. While in 2022 the economy was affected by the inflationary consequences of the Russian-Ukrainian conflict, which resulted in soaring food and fuel prices.
The European Union then agreed to resume financial support, while United States also pledged aid.
By the end of 2023, Burundi’s foreign exchange reserves stood at $96.4 million, or 0.8 months of import cover
Inflows from remittances, and gold exports gave some relief, according to the IMF.
Additional Source: AfricanNews