The Monetary Policy and Financial Stability Statement, released, this week, has brought good news about the economy. The report states that during the first half of the year 2011, the Rwandan economy has been progressing in an international environment, marked by uncertainties characterized by unstable global oil and food prices.
The report, indeed, indicates that Rwanda has benefited from a significant improvement in trade with other countries. Rwanda Tea Authority, for instance, reports that earnings from tea exports rose 4 percent to $34.3 million in the first half of 2011, compared to the same period last year.
The predictions that the tea sector will earn at least $60 million by end of this year, shows that despite the volatility at the international level, , there is hope for a brighter future.
Furthermore, the economic stability can be seen through critical indicators such as volumes of Rwanda’s external trade that have performed impressively. Export volumes and value increased by 58.23 percent and 48.09 percent respectively.
Perhaps, the strongest indicator of Rwanda’s economic stability right now, is the well managed inflation. One way of assessing economic stability is through monitoring consumer prices.
Although inflation has been increasing, it has been maintained at moderate levels. In March it stood at 4.1 percent and 5.8 percent in June 201.This is impressive considering what other economies are going through and the policies by the Government and Central Bank should be commended.