Minister Murangwa, speaking at the release of Q3 GDP results, said the economy remains resilient and stable, regardless of global shocks.
The National Institute of Statistics of Rwanda (NISR), on Tuesday, announced Gross Domestic Product (GDP) results for the third quarter of 2024, projecting a more optimistic outlook for the economy, as the year comes to an end.
The results indicate that Rwanda’s GDP at current market prices was estimated at Frw 4,806 billion, up from Frw 4,246 billion in Q3 of 2023. Services contributed 49% to GDP, agriculture contributed 24% per cent while industry contributed 20% percent. Net direct taxes accounted for 7%, according to Ivan Murenzi, Director General, National Institute of Statistics of Rwanda.
According to NISR, in Q3 of 2024, GDP growth was 8.1% following 9.8% in Q2 and 9.7% in Q1. This led to an average growth of 9.2% for the three quarters (January – September) of 2024. In terms of sector performance, Agriculture increased by 4%, Industry increased by 8% while Services increased by 10%.
Yusuf Murangwa, Minister of Finance and Economic Planning, said the result aligned with government projections, stating the economy continues to be stable and resilient, regardless of global shocks, and they hope the same for the next year, pending the performance of Q4.
“We’ve seen the momentum building up from the end of last year, leading to the beginning of this year. A 9.8 percent growth, Bend 9.8 percent growth. So, 8.1 percent is in line with expectations. We normally have two expectations; one is formal and one is not formal. The formal expectation is conservative,”
Unless something extraordinary happens, Murangwa says Rwanda’s economy is expected to remain on a positive growth trajectory.
“We normally have conservative expectations that we project publicly, after looking at many constraints that can happen, including effects of climate change, where we expect mostly agriculture to possibly be affected by climate issues,” Minister Murangwa said, adding that official projections were around 6.5 percent.
In Q3 of 2024, GDP at current market prices was estimated at Frw 4,806 billion, up from Frw 4,246 billion in Q3 of 2023. Services contributed 49% to GDP, agriculture contributed 24% percent while industry contributed 20% percent. Net direct taxes accounted for 7%.
In Q3 of 2024, GDP growth was 8.1% following 9.8% in Q2 and 9.7% in Q1. This led to an average growth of 9.2% for the three quarters (January – September) of 2024.
Key drivers of growth
The agriculture sector saw an overall growth of 4%, with food crop production increasing by 2%, driven by the mild harvest of season B and C of 2024. Export crops production increased by 16% driven by 22% increase in coffee production, while tea production declined by 10%.
On the other hand, the industrial sector experienced an overall growth of 8%, primarily driven by a 26% increase in mining and quarrying activities, along with a 5% increase in both manufacturing and construction activities.
“When you combine the growth for the last three quarters, it leads to an average growth of 9.2 percent for the three quarters. That’s the period July to September 2024. I’m so when we look at growth by the key sectors, agriculture increased by four percent,” Murenzi said, attributing the growth to a two percent increase in food crop production, following a mild harvest for Season B.
Murenzi, DG NISR, highlighted key drivers of growth.
The growth in mining and quarrying activities is observed through exports where quantity of Cassiterite increased by 27%, Coltan increased by 42% and Wolfram increased by 15%.
Within manufacturing, the production of Chemicals, rubber and plastic products increased by 20%, Metal products, machinery & equipment grew by 14%, while Textiles, clothing & leather goods increased by 11%. However, food processing decreased by 1% following the growth of 16% in Q3 of 2023.
The services sector recorded an overall growth of 10%. Within the sector, wholesale and retail trade grew by 19%, while transport activities grew by 8%. Other notable service sector growth includes a 17% increase in hotels and restaurants, a 15% rise in financial services, and a 19% growth in information and communication services. Public administration activities increased by 10%, Education activities increased by 2% and health and social work services increased by 8%.
