Muted Growth Expectations for Burundi in 2025 Due to Domestic Demand Challenges
Burundi’s real GDP growth is expected to decline from 2.2% in 2024 to 2.1% in 2025 due to weak domestic demand and rising military spending. However, growth is projected to rebound to 4.5% in 2026, attributed to improved agricultural conditions and an increase in private consumption.
The projected real GDP growth for Burundi is anticipated to decrease slightly from an estimated 2.2% in 2024 to 2.1% in 2025. The contributing factor to this muted growth is a lackluster domestic demand, exacerbated by mounting challenges to private consumption. Additionally, an increase in military expenditures is expected to impede government consumption that typically bolsters economic growth.
Looking ahead to 2026, a rebound in growth is forecasted as it is expected to accelerate to 4.5%. This improvement will likely be driven by enhanced agricultural conditions, which may alleviate domestic price pressures and consequently support a rise in private consumption. These projections indicate a complex economic landscape where fluctuations in agricultural output and governance priorities play significant roles in shaping growth rates for Burundi.
In summary, Burundi’s economic growth is projected to slow down slightly in 2025 due to weak domestic demand and increased military spending. However, there is optimism for a stronger rebound in 2026, driven by better agricultural conditions and a subsequent increase in private consumption. Such developments suggest that while challenges remain, there is potential for revitalization in Burundi’s economy in the medium term.
Original Source: www.fitchsolutions.com
