Performance of the Economy
The current political stability and the improved financial management has contributed to Burundi’s improved economic performance. The summary of the economic performance is as follows;
- The Gross Domestic Product (GDP) in Burundi was worth 2.33 billion US dollars in 2011.Agricultural production contributed 27.1% to GDP , followed by public services 25.6%, manufacturing and handicrafts 12.2% and transport and communication 5.4%.
- Agriculture sector accounts for about 60% of exports and it employs more than 90% of the population, therefore representing the dominant employer in the economy.
- The major crops grown include coffee, tea, cotton, corn, sorghum and bananas.
- The country’s natural resources include nickel, cobalt, copper, platinum, gold, tin, and limestone, most of which are mined in small quantities
- The manufacturing sector is dominated by light industries such as textile, leather goods and food processing.
The Government of Burundi has undertaken bold reforms which have led to the improvement in the investment climate. Burundi has been classified among the 10 top reformers in the world and the 4th in Africa.
The government has followed a financial and structural reforms to stabilize the economy and revive economic activity. These have included: prudent monetary policy implemented by the Central Bank in the context of a liberalized foreign exchange regime, prudent fiscal policy with poverty-focused expenditure priorities, steps to strengthen and improve transparency in public financial management.
The Burundi Government is expected to adopt an expansionist approach, increasing spending on civil–service and military, and implementing various measures of the national development strategy.
The National Bank of Burundi (BRB) is the Central Bank and supervises monetary policy and the banking sector. BRB has made several efforts to engage with the Ministry of Finance in view of improving monetary and fiscal policy coordination.
The Economist Intelligence Unit forecasts an average inflation rate of 11% in 2012. According to the IMF the average inflation in Burundi is expected to go down to 5% by 2015