2012-11-14 21:14:56 - Rwanda Business Forecast Report Q3 2012 - a new country guide report on companiesandmarkets.com
We forecast that Rwandan economic growth will slow to 7.5% in 2012 from 8.5% in 2011 as a subdued outlook for the external sector offsets, to some extent, the brighter prospects for domestic demand. We expect that a similar dynamic will keep growth at around the 7.5% level in 2013. We believe that cooling inflationary pressures combined with concerns about the effect that weak global demand will have on Rwandan economic growth mean that the central bank is unlikely to make any further rate hikes over the course of 2012. We expect that the policy rate will remain at 7.50% for the remainder of the year.
Key Risk To Outlook
The major risks to our growth forecasts are to the downside
and stem from the possibility of poor weather and from a worse than anticipated outcome to the ongoing eurozone debt crisis.
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