Simulating the Impact of Covid-19 on Formal Firms in Rwanda

Authors: Adrienne Lees, Giulia Mascagni & Fabrizio Santoro
Publisher: World Bank Group
Date: August 2020


MTI Practice Note 9J

Prior to Covid-19, Rwanda was booming, with economic growth exceeding ten percent in 2019. Strong growth has been accompanied by significant improvements across various human development indicators, such as poverty reduction and rising life expectancy. The pandemic has placed much of this progress in jeopardy. Exports and tourism have been hurt by border closures and disrupted trade flows, and Rwanda is already experiencing mounting balance of payment and fiscal pressures. The associated economic contraction is likely to result in significant declines in tax revenues.