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Burundi inflation to slide to 7.5 pct in 2010: IMF

Burundi inflation to slide to 7.5 pct in 2010: IMF
By Reuters
Tue 24 Nov. 2009, 09:00 CAT

People shop in a supermarket in downtown Nairobi October 23, 2008. NAIROBI (Reuters) - Burundi's headline inflation is expected to fall to 7.5 percent next year from 9 percent in 2009, the International Monetary Fund (IMF) said. IMF has been supporting the country of 8 million people through an arrangement under one of its assistance programmes.

"The macroeconomic outlook in 2010 is generally positive with real GDP projected to rise by 4 percent and inflation declining further to 7.5 percent," the fund said in a statement late on Monday.

IMF has forecast a 3.5 percent growth for the Burundian economy this year and a sharp drop in the headline inflation to below 9 percent from about 26 percent at the end of 2008.

An uncertain external environment and electricity shortages, however, pose risks to the economy of the landlocked central African country in 2010, IMF added in the statement issued at the end of a visit to Bujumbura by its officials.

"Policy discussions (with Burundian officials) focused mainly on the 2010 budget and the need to preserve macroeconomic stability and revive growth in the face of the challenging economic environment," it said.

Burundi has been carrying out reforms in its important coffee sector, governance and revenue collection.

"The IMF will continue to help Burundi to address these challenges," the statement said, adding its board is expected to discuss a review of its support programme in January 2010.

Labels: BURUNDI, IMF

posted by MrK @ 5:42 PM