MINECOFIN

MINISTRY OF FINANCE AND ECONOMIC PLANNING

REPUBLIC OF RWANDA

Rwanda’s economy grew by 5.9% in 2016

Posted on 16.03.2017

Rwanda’s Economy registered 5.9% growth in 2016 product at current prices estimated at Frw 6,618 billion, up from Frw5,956 billion in 2015 according to figures released by the National Institute of Statistics of Rwanda (NISR).

Announcing the growth figures, Yusuf Murangwa, the Director General of NISR noted that the main drivers of the economy were industry and services which grew by 7%.

Murangwa noted that the agriculture sector grew by 4% boosted by a good harvest in season A of 5%. He however pointed out that season B and C grew minimally by 1% following drought and floods in some parts of the country thus the failure to meet projected growth of 6%.

In industry sector manufacturing activities increased by 7%. Growth is attributed the rise to emerging industries in line with made in Rwanda such as manufacturing, textiles, leather and clothing which increased by 10% while food processing increased by 8% while production of construction material such as cement which is included in nonmetallic minerals increased by 21%.

The construction sector continued to grow by 5% following a high growth of 15% in 2015. The slowdown is due to the windup of some large construction projects early in 2016.

In the service sector, hotels and restaurants grew by 11% reflecting recent developments in conference tourism. Transport activities increased by 8% boosted by air transport that increased by 15%.

Improvements:

These GDP estimates are based on the new 2014 Supply and Use table (SUT) which has been used to update the benchmark levels of economic activity, which form the base of the estimated growth of GDP. The level of GDP in 2014 based on the previous SUT (2011) was Frw 5,395 billion. This compares with the level from the 2014 SUT of Frw 5466 billion, a revision upwards of 1.3%

The series of annual and quarterly estimates of GDP (and corresponding growth rates) differ from those previously published for the years 2013, 2014 and 2015. They have been revised to reflect improvements in data and analysis.

There are two main reasons for the revision: The introduction of new or improved data sources and methods; and the effects of new benchmark in terms of changes in shares of GDP between 2011 and 2014.

The revised series show that Service sector contributed 48% of total GDP in 2016. The share of agriculture in 2016 was received from 33% on the previous basis to 30% based on the new SUT. The share of industrial sector increased from 14 to 17% of GDP.


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