Burundi has been hit hard by several shocks, including the effects of the COVID-19 pandemic and limited foreign exchange availability for imports. This has led to a challenging economic situation with a high cost of living. In order to ease this situation, Burundi has sought help from the International Monetary Fund (IMF) and the two parties have agreed on economic policies backed by a new 40-month arrangement worth around US$261.7 million.
The aim of the program is to support economic recovery, external sustainability, and debt sustainability in Burundi, while creating fiscal space for growth. The agreement is subject to approval by the IMF Management and consideration by the Executive Board.
This marks the first Upper Credit Tranche-quality program for Burundi supported by the Fund since 2015. Despite the challenges faced, the country is projected to rebound with a real GDP growth of 3.3 percent in 2023, while inflation pressures are expected to remain high, at around 18 percent.