Analysis by Region - Emerging Markets - Burundi

Analysis by Region - Emerging Markets - Burundi

Heavy rains throughout Burundi between January and May this year have caused floods and landslides, leading to widespread displacement of people, infrastructural damage, and poor crop production. Given that over 80% of Burundians are employed in the agricultural sector, we expect disposable incomes and consumption spending to deteriorate this year. Flood damage also spoiled perishable goods and exacerbated product shortages, leading to double-digit increases in food prices. In addition to lower agricultural output, persistent power disruptions due to outdated transmission equipment are expected to weigh on business activity. On the flipside, investments in the energy, transport, and mining sectors could support economic growth this year. In this report, we lowered our 2024 economic growth estimate to 3.1% from 4.8%.