Food manufacturing in Kigali
The Rwanda economy is projected to grow at 6.6% this year, according to the Ministry of Finance (MINECOFIN), with the usual support of the National Institute of Statistics of Rwanda (NISR).
The projection is based on the calculation that “the Rwanda economy is projected to continue its upward trend.” The figure is lower than last year’s growth rate of 8.2%.
But as the new Minister of Finance and Economic Planning, Yusuf Murangwa stressed to journalists, nothing should be read into the apparent decrease, beyond the ministry’s preference to arrive at projections conservatively, and revise them upwards, if need be.
And of course, while last year’s 8.2% is an actual figure, this year’s remains a projection. In fact, growth in the first quarter of this year, reached 9.7%.
The crunching of the numbers revealed that almost every sector registered an increase in economic activity.
The service sector grew by 11%, followed by industry and agriculture, at 10 and 7 percent, respectively.
Overall, the service sector now accounts for 46% of GDP (Gross Domestic Product), with agriculture and industry, respectively at 25% and 23%.
Broken down, the growth of 10% in industry was largely due to good performance in mining and quarrying, which increased by 22%.
In manufacturing, paper and wood processing grew by 25%, with manufacturing of metal products and machinery showing a 12% increase.
In the service sector, telecommunications increased by 28%, with wholesale and retail trade increasing by 21%. Transport, hotels and catering, were level pegging at 13%, with financial services increasing by 6%.
Not every sector performed well. Exports registered no growth, remaining at 0%. Coffee production fell by 13%, although tea harvests increased by 21%.
In the first quarter of the year, private consumption dwarfed government consumption, at 73% and 15% of GDP, respectively. Overall, final consumption increased by 23%. Exports increased by 50%, but that was offset by a more than double increase in imports, at 123%.
Gross capital formation, or additions of capital goods, increased by 77%.
The general outlook remains positive, but as the minister noted, the ministry, NISR, the Central Bank, and others, continue to watch how the economy might be affected by foreseen and unforeseen developments, and inform the public of any major changes.
