NAIROBI, July 27 (Reuters) - Burundi’s economy is expected to grow 2% this year after contracting 1% in 2020 when the impact of the pandemic affected sectors including transport and hospitality, the International Monetary Fund said on Tuesday.

At the same time, the fund said it had reached an agreement on economic and structural policies with Burundi, paving the way for the release of about $78 million under the IMF’s Rapid Credit Facility to help mitigate the impact of coronavirus.

“The economy is expected to rebound mildly in 2021 ... supported by stronger activities in the secondary and tertiary sectors as supply chain issues wane,” the IMF said in a statement.

“Risks to the macroeconomic outlook are tilted to the downside, including the risks of a longer second wave of COVID-19.”

Burundi has reported 6,573 confirmed COVID-19 cases and eight deaths, according to a Reuters tally. - Reuters (Reporting by George Obulutsa; Editing by Mike Harrison)