Muted Economic Growth Forecast for Burundi in 2025 Due to Domestic Challenges
Burundi’s GDP growth is projected to decline slightly to 2.1% in 2025 due to muted domestic demand and increasing military spending. A recovery is expected in 2026 with growth reaching 4.5% as agricultural conditions improve, enhancing private consumption.
Burundi is projected to experience a slight decline in real GDP growth from an estimated 2.2% in 2024 to 2.1% in 2025. This slowdown is attributed to muted domestic demand, compounded by diminishing private consumption and increased military expenditure that restricts government spending aimed at growth enhancement.
Looking ahead, there is an optimistic outlook for 2026, where growth is anticipated to accelerate to 4.5%. This potential improvement is attributed to favorable agricultural conditions which are expected to alleviate domestic price pressures, thereby bolstering private consumption.
The insights in this report are provided by BMI, a Fitch Solutions company. It is important to clarify that these comments do not reflect Fitch Ratings’ views or data, and the information is sourced independently from BMI and other credible sources.
In summary, Burundi’s economic growth is expected to decelerate in 2025 due to weak domestic demand and increased military costs. However, a rebound is anticipated in 2026 driven by improvements in agricultural conditions that may stimulate private consumption. This analysis underscores the challenges and potential for economic recovery within Burundi’s landscape.
Original Source: www.fitchsolutions.com
Post Comment