Home Business & TechEconomy Rwanda Registers 7.5% Growth Despite Global Shocks

Rwanda Registers 7.5% Growth Despite Global Shocks

by Daniel Sabiiti
1:32 pm

Coffee washing at Muhondo coffee company. Coffee brought a great contribution in country GDP

Rwanda’s economy has registered 7.5% growth in the second quarter of 2022 despite current global shocks, and inflation, according to the Ministry of Finance.

The performance follows a 7.9% growth in the first quarter, an indication that the economy is gaining a strong momentum post COVID-19 pandemic.

According to the National Institute of Statistics of Rwanda (NISR), in the second quarter of 2022, the Gross Domestic Product (GDP) at current market prices was estimated at Rwf 3.279 billion, up from Rwf2,668 billion in the second quarter of 2021.

Services contributed 47%, Agriculture 25%, Industry 21% while net direct taxes accounted for 8 % of GDP.

The Minister of Finance, Uzziel Ndagijimana noted that despite global supply bottlenecks and inflation, the economy has continued to grow a strong indicator of overall recovery.

“For the first two quarters the economy has registered over 7% growth. At this rate our 6% growth projections for 2022 is achievable,” Minister Ndagijimana said.

In terms of sector performance, overall, agriculture grew by 2%. This growth was due to an increase of 17% in the production of export crops boosted by 19% increase in coffee production and 2% in tea production.

Food crops decreased by 1% due to a decrease in the harvest of season A 2022 when compared to season A of 2021.

The industry sector registered a 6% growth. industry increased by 6% while services increased by 12%.

Mining and quarrying grew by 9%. Manufacturing grew by 10% boosted by 8% increase in food processing, 14% increase in beverages, 18 increase in textiles, 10% increase in wood manufacturing and 21% increase in manufacturing of non-metallic mineral products.

Given the high growth in construction during the second quarter of 2021 (33%), the sector did not grow further in the second quarter of this year.

The overall service sectors performance was 12%.

Within services, wholesale and retail trade increased by 17%; transport activities increased by 27% with 119% and 13% growth in air transport and land transport respectively.

Among other services, hotel and restaurants increased by 193%, financial services increased by 10%, telecommunication services increased by 8%, professional and scientific services increased by 2%.

Health services increased by 4% while education services increased by 14%.

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