IMF concern at economic decline

The severe impact of the ongoing civil war in terms of the economy, infrastructure and massive displacement of people is a source of serious concern, and the hope is that the Arusha peace talks will offer lasting peace and enhanced economic prospects, the International Monetary Fund (IMF) has stated. In a report posted on its website after the conclusion of recent consultations on the country, the agency noted that Burundi's
macroeconomic and financial situation had deteriorated substantially in the past year. Of particular concern, it said, was the contraction of Gross Domestic Product (or the size of the economy), strong inflationary pressures, weakening of tax accounts and a severe shortage of foreign exchange.The IMF noted that major economic adjustments should be possible
after the re-establishment of peace and the resumption of international assistance. The notice recommended that the Burundi authorities should curtail the wage bill, control expenditure and improve budget management with a view to switching expenditure from the military to the social
sector.