Economic trends
Despite the optimistic outlook of the African Development Bank, Burundi has experienced during the year 2011 a regain in political violence which has strongly penalized its economic growth which is currently around 4%. This growth is mainly drawn by the coffee exports and the construction sector. In addition, even though it is hardly exploited, the geographical position of Burundi provides it with a trade hub on the sub-region.
In the uncertain context of overcoming the crisis, which still exists, the priority is to preserve the macro-economic stability and to stimulate economic growth. The budget for 2012 reflects the government previous promise to follow a program of reforms concluded with the IMF which consists on concentrating the expenses in the agricultural field and infrastructure projects. A new agreement should be concluded at the beginning of 2012 in the terms of "Extended Credit Facility". The main challenge of Burundi is its political instability. Despite the end of the civil war which caused more than 300,00 deaths, the reactivity of a certain number of rebel groups shackles the economic improvement. These tensions, as well as the weakness of the judiciary and administrative systems, corruption, state interference in economic activities and a very strong dependence on international aid (42% of its GDP) are the inherent obstacles to the development of many countries in the African continent.
On the educational plan, 50% of the children attend school. In the health field, the situation is not better: one adult out of 15 is seropositive and medical supplies are insufficient. As a fact, the increase in oil and food prices, as well as the indirect consequences of the financial crisis, have worsened the situation in Burundi which should not improve in the next few years. Almost two-thirds of the population live under the threshold of poverty.
Main branches of industry
International trade
Burundi is open to international trade (trade represents more than two-thirds of the GDP). The country is a member of different trade organizations: WTO, COMESA (Eastern and Southern Africa), ECCAS (Central Africa).
Burundi's trade balance is in a structural deficit, according to the Bank of the Republic of Burundi, this trend should continue during the next following years. This situation is mainly explained by a stammering manufacturing sector and a small diversity in the tertiary sector. The deterioration of the trade balance during the last year was also a result from the increase in gas prices and the materials related to the construction sector, such as cement. In addition, the income drawn by the exports is much lower than the cost of imports. The main export products are raw materials (coffee, tea, sugar, cotton). The manufactured goods represent less than 10% of exports.
Burundi's main clients are Japan, Germany, Pakistan, Rwanda and Sudan. The country imports most of all: petro-products, foodstuff and capital goods from Saudi Arabia, Kenya, Uganda, the European Union, China and India.
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Last updates: May 2012
