Focus on Digitalization and Revenue Diversification slide image

Focus on Digitalization and Revenue Diversification

Economic Overview Sources: Global conditions • • The global economy is experiencing a strong but uneven recovery with estimated growth of 6% in 2021 and 4.9% in 2022. (1) There remains uncertainty about the path of economic growth this year, much of it due to risks surrounding evolution of the virus and the speed and effectiveness of vaccination rollouts in many of world's low-income countries. Sub-Saharan Africa The regional GDP contracted by 1.8% in 2020 is expected to recover modestly to 3.4% in 2021 and 4.2% in 2022. This outlook is subject to some key downside risks, particularly regarding the path of the COVID 19 pandemic and the resilience of the region's health systems. (2) (1) IMF, World Economic Outlook Update July 2021 (2) IMF, Regional Economic Outlook (sub-Saharan Africa) April 2021 M $ Մ Pandemic Impact Rwanda's GDP recovered in the first half of 2021 with growth of 3.5% driven by a faster recovery of the agriculture sector and the industry sector, following a GDP contraction in 2020. (3) The country is expected to grow to 5.7% in 2021, supported mainly by high infrastructure spending and a pick-up in the tourism sector as the effects of the pandemic dissipate. (4) Exchange Rate Developments • Significant currency depreciations in most Africa currencies observed during the peak of the crisis continued through the first and second quarter of 2021 and particularly severe in in tourism dependent economies. Sources: (3) BNR, MPC Press release 17 Aug 2021 (4) AFDB, African Economic Outlook 2021 3
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