Rwanda’s Gross Domestic Product (GDP) at current market prices grew by 7%, from Rwf4,864 Billion in 2013 to Rwf5,389 Billion in 2014.
Base year was 2011
According to the National institute of statistics of Rwanda (NISR), the services sector contributed 47% (US$3.572b) of GDP while the agriculture sector contributed 33% (US$2.508b) and 14% (US$1.064b) was generated from the industry sector.
Downward adjustment for subsidies on products pushed the GDP upward by 5% (US$380m).
Meanwhile, individual growth of the three mentioned sectors grew by 9%, 5%, 6% respectively.
The NISR said that aggregated household expenditure for 2014 was 74% the GDP while government expenditure was 15%.
Capital formation is estimated at 25% of the GDP. Imports increased by 7% while exports increased by 4%, thus pushing the country’s trade imbalance even higher, currently estimated to be at 75%.
refer to report: GDP_National_Accounts_2014_Q4
Finance Minister Claver Gatete told journalists at Press conference, “Overall manufacturing numbers are very disappointing despite food processing having grown slightly.”
“The big difference in household spending and government spending can be solved by increased savings,” Gatete added.
According to Gatete, “growth is seen and felt especially in crop production.”
However, the National Institute of Statistics says there was a challenge of processing and value addition hence less multiplier effect.
NISR can not establish whether there were more jobs or not.
The Finance Minister says that in June a census will be conducted to indicate employment over the previous years.
Gatete explains, “there is no more room for estimates. Hard to guess.” He admits that “numbers are needed for policy formulation”.
“Challenges included real and big impact of donor cuts felt during 2014. There was reprioritize , change in policies and GDP was hit hard plunging down to 4.6%,” Gatete noted.
Minister says that government is revising expenditure and policies to maximize returns in the service sector which he says expects to grow by 56%.
However, the Minister says Agriculture has not been left out , “there are strategic investments being made to increase agriculture especially irrigation, fertilizers and subsidies.”
Godfrey Kabera, the Director of Planning at MINICOFIN, “manufacturing is lagging because factories are not producing to capacity”.
He adds that the cost of doing business is high because insufficient energy and lack of access to raw materials.