Burundi’s real GDP growth is expected to decline to 2.1% in 2025 from 2.2% in 2024 due to weak domestic demand and rising military expenditures. Growth may rebound to 4.5% in 2026 with improved agricultural conditions boosting private consumption.
In 2025, Burundi is projected to experience a slight decrease in real GDP growth, declining to 2.1% from an estimated 2.2% in 2024. This muted growth is predominantly attributed to weak domestic demand, which is hindered by increasing challenges to private consumption. Additionally, elevated military spending is expected to divert resources away from government consumption that could otherwise stimulate economic growth.
However, a more positive outlook is anticipated for 2026, when GDP growth is expected to rebound to 4.5%. This acceleration will likely be driven by enhanced agricultural conditions that help stabilize domestic price pressures, consequently encouraging a rise in private consumption. The overall economic landscape remains fragile but shows potential for improvement in the coming year.
In summary, Burundi’s economic outlook for 2025 indicates a muted growth rate of 2.1%, due to subdued domestic demand and heightened military expenditure impacting government consumption. Nonetheless, there is optimism for 2026, with projected growth of 4.5% as agricultural improvements could foster a favorable environment for increased private consumption.
Original Source: www.fitchsolutions.com
