Burundi: Economy#
Burundi is a landlocked, resource-poor country with an underdeveloped manufacturing sector. Agriculture accounts for over 40% of GDP and employs more than 90% of the population. Burundi's primary exports are coffee and tea, which account for 90% of foreign exchange earnings. Thus, Burundi's export earnings - and its ability to pay for imports - rest primarily on weather conditions and international coffee and tea prices, although exports are a relatively small share of GDP. Burundi is heavily dependent on aid from bilateral and multilateral donors. Foreign aid in 2014 represented 42% of Burundi's national income, the second highest rate in Sub-Saharan Africa. Burundi joined the East African Community (EAC) in 2009.An ethnic war that ended in 2005 resulted in more than 200,000 deaths, forced more than 48,000 refugees into Tanzania, and displaced 140,000 others internally. Political stability, aid flows, and economic activity improved following the end of the civil war, but underlying weaknesses - a high poverty rate, poor education rates, a weak legal system, a poor transportation network, overburdened utilities, and low administrative capacity – have prevented the government from implementing planned economic reforms. Government corruption has also hindered the development of a private sector as companies have to deal with ever changing rules. The purchasing power of most Burundians has decreased as wage increases have not kept pace with inflation.
In 2015, Burundi’s economy suffered from political turmoil over President NKURUNZIZA’s controversial third term. Blocked transportation routes disrupted the flow of agricultural goods. And donors withdrew aid, increasing Burundi’s budget deficit. When the unrest ends, regional infrastructure improvements driven by the EAC and funded by the World Bank may help improve Burundi’s transport connections and lower transportation costs.
Economic Facts#
| GDP (purchasing power parity) | $7.892 billion (2016 est.) $7.933 billion (2015 est.) $8.259 billion (2014 est.) note: data are in 2016 dollars |
|---|---|
| GDP (official exchange rate) | $2.742 billion (2015 est.) |
| GDP - real growth rate | -0.5% (2016 est.) -4% (2015 est.) 4.5% (2014 est.) |
| GDP - per capita (PPP) | $800 (2016 est.) $800 (2015 est.) $900 (2014 est.) note: data are in 2016 dollars |
| Gross national saving | -0.1% of GDP (2016 est.) -4.9% of GDP (2015 est.) -2.7% of GDP (2014 est.) |
| GDP - composition, by end use | household consumption: 92.4% government consumption: 16.5% investment in fixed capital: 24.3% investment in inventories: -8.1% exports of goods and services: 7.5% imports of goods and services: -32.6% (2016 est.) |
| GDP - composition, by sector of origin | agriculture: 45.8% industry: 17.1% services: 37.1% (2016 est.) |
| Agriculture - products | coffee, cotton, tea, corn, sorghum, sweet potatoes, bananas, cassava (manioc, tapioca); beef, milk, hides |
| Industries | light consumer goods (blankets, shoes, soap, beer); assembly of imported components; public works construction; food processing |
| Industrial production growth rate | 0.8% (2016 est.) |
| Labor force | 5.255 million (2016 est.) |
| Labor force - by occupation | agriculture: 93.6% industry: 2.3% services: 4.1% (2002 est.) |
| Unemployment rate | NA% |
| Population below poverty line | 68% (2002 est.) |
| Household income or consumption by percentage share | lowest 10%: 4.1% highest 10%: 28% (2006) |
| Distribution of family income - Gini index | 42.4 (1998) |
| Budget | revenues: $525.1 million expenditures: $656.9 million (2016 est.) |
| Taxes and other revenues | 19.2% of GDP (2016 est.) |
| Budget surplus (+) or deficit (-) | -4.8% of GDP (2016 est.) |
| Public debt | 43.4% of GDP (2016 est.) 39.8% of GDP (2015 est.) |
| Fiscal year | calendar year |
| Inflation rate (consumer prices) | 6.5% (2016 est.) 5.5% (2015 est.) |
| Central bank discount rate | 11.25% (31 December 2010) 10% (31 December 2009) |
| Commercial bank prime lending rate | 13.9% (31 December 2016 est.) 15.3% (31 December 2015 est.) |
| Stock of narrow money | $364.9 million (31 December 2016 est.) $397.7 million (31 December 2015 est.) |
| Stock of broad money | $523.5 million (31 December 2016 est.) $571.2 million (31 December 2015 est.) |
| Stock of domestic credit | $809.8 million (31 December 2016 est.) $851.3 million (31 December 2015 est.) |
| Market value of publicly traded shares | $NA |
| Current account balance | -$127 million (2016 est.) -$455 million (2015 est.) |
| Exports | $132.4 million (2016 est.) $119.6 million (2015 est.) |
| Exports - commodities | coffee, tea, sugar, cotton, hides |
| Exports - partners | Germany 12.3%, Pakistan 10.7%, Democratic Republic of the Congo 10.7%, Uganda 8.1%, Sweden 7.8%, US 7.1%, Belgium 6.3%, Rwanda 4.6%, France 4.4% (2015) |
| Imports | $683.4 million (2016 est.) $800.1 million (2015 est.) |
| Imports - commodities | capital goods, petroleum products, foodstuffs |
| Imports - partners | Kenya 15%, Saudi Arabia 14%, Belgium 9.9%, Tanzania 8.3%, Uganda 7.3%, China 7.1%, India 4.9%, France 4% (2015) |
| Reserves of foreign exchange and gold | $100.2 million (31 December 2016 est.) $136.2 million (31 December 2015 est.) |
| Debt - external | $705.2 million (31 December 2016 est.) $684.1 million (31 December 2015 est.) |
| Exchange rates | Burundi francs (BIF) per US dollar - 1,665 (2016 est.) 1,571.9 (2015 est.) 1,571.9 (2014 est.) 1,546.7 (2013 est.) 1,442.51 (2012 est.) |