Home Business & TechEconomy Rwanda’s Economy Registers 8.6% Growth, Higher than Expected

Rwanda’s Economy Registers 8.6% Growth, Higher than Expected

by Dan Ngabonziza
3:42 pm

Rwanda has adopted Irrigation to improve agriculture production and food security

Rwanda’s economy grew by 8.6% in 2018 – a build-up of 10.4% registered in the first quarter, 6.8% for second quarter and 7.7% for third quarter.

The fourth quarter registered a 9.6% growth, Finance Minister Dr. Uziel Ndagijimana said on Friday.

Initial projection had put the economy at 7.2% growth. Speaking to journalists during a press conference, Finance Minister Dr. Uziel Ndagijimana said that the growth was attributed to Agriculture which grew by 6%, Industry (10%) and services that grew at 9%.

The Minister said economy will be projected at 7.8% growth and 8.0% in 2019 and 2020 respectively.

He, however, added that a team of International Monetary Fund (IMF) is currently in the country working with the ministry to come up with a final review of the economy in coming years.

Meanwhile, the growth in service sector was attributed to transport activities which grew by 16% boosted by air transport which grew by 36%.

Wholesale and retail services grew by 14% while Hotels and restaurants increased by 11%, followed by financial services (12%) ICT (14%) while public administration activities increased by 27%.

The growth in agriculture was pushed by good harvests of food crops in the second and third seasons of 2018, with livestock products increasing by 14% while export crops declined by 4%, National Institute of Statistics of Rwanda said.

The 12% growth in Industry sector was boosted by 20% increase in construction activities and 13% increase in manufacturing.

Rwanda’s Growth Domestic Product at current market prices was estimated to be Rwf8,189 billion in 2018, up from Frw 7,600 billion in 2017 or 8.6% higher in real terms compared to 2017.