Publication date: 9 September 2026
Author: African Development Bank
Description: Rwanda’s economy grew by an estimated 9.4% in 2025, driven by broad-based expansion in services, industry, and agriculture. Inflation rose to 7.2%, prompting the National Bank of Rwanda (BNR) to raise the policy rate to 6.75%. The fiscal deficit narrowed to 5.5% of gross domestic product (GDP), but public debt climbed to 75.0% of GDP and the current account deficit widened to 13.1% as investment-related imports surged. Growth is projected to moderate to 7.0% in 2026 before recovering to 7.4% in 2027, with downside risks from political conflict in the Middle East causing supply-chain disruptions, regional insecurity, and tighter global financial conditions. Rwanda’s financing model is increasingly constrained: grants have declined to 3.1% of GDP, new borrowing is shifting toward less concessional terms, and debt service now absorbs 18% of revenue.
