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The Economic Activity of Burundi

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Burundi has an underdeveloped economy due to undesirable national situations. These include ethnic strife, overpopulation, and deficient resources. All these contributed to poor economical growth and development. In turn, public subsistence relies on agriculture and international financial assistance.

Agriculture is the main economic catalyst which largely depends on farming. Coffee production is the primary agricultural subsector which is held by the national government. As an enterprise of the State, the government particularly earns from the crop by way of exportation efforts. As a matter of fact, it is the bread and butter of national exports followed by tea and cotton. Reforms on coffee production have also been instituted since 1986 along with export diversification, import liberalization, international trade barriers reduction, and foreign exchange rehabilitation by the World Bank in coordination with the International Monetary Fund.

In 2008 though, GDP percentage contribution from three major sectors is characterized by 46% on services, 33% on agriculture, and 21% on industry. Service sector is reliant to common subsectors within the locality. Agricultural sector is dependent on agricultural produce such as banana, coffee, cotton, corn, sorghum, sweet potato, tea, livestock, and dairy products. Industrial sector is based on construction and public works, food processing, blanket weaving, shoe manufacturing, soap making, and components assembly.

Other supporting economic sectors are import and export industries. In 2007, international trading partners on imports include Belgium (9%), France (6%), Germany (5%), India (5%), Kenya (11%), Pakistan (4%), Uganda (5%), and Saudi Arabia (17%) while on exports include Belgium (6%), China (4%), France (4%), Germany (31%), Pakistan (7%), Rwanda (4%), and Sweden (4%). In 2008, major imports include capital goods, foodstuffs, and petroleum products while exports include coffee, cotton, hides, sugar, and tea.