The Government is confident that the country will achieve the projected 6.2% growth target by the end of the year despite a slow start in the first quarter.
According to GDP quarterly report released by National Institute of Statistics of Rwanda (NISR) yesterday, the economy expanded by Frw 224 Billion the first three months of 2017 reflecting 1.7% growth.
GDP at current market prices was estimated at Frw 1, 817 billion, up from Frw 1, 593 billion in the same quarter of 2016.
The Minister of Finance and Economic Planning Claver Gatete attributed the sluggish start to a reduction in construction activities with main projects such as Kigali Convention Center already complete.
“We believe we are still on course to hit 6.2% growth projections. We are going to analyse the statistics, look at policies and identify where we need to improve to keep the economy resilient. We are confident of stronger growth going forward,” Minister Gatete said.
The services sector outperformed other sectors growing by 4 % and contributed 46 % to the national economy. The growth is attributed to performance in hotels and restaurant activities which grew by 17 %.
The agriculture sector grew by 3%, contributing 32% to the economy. This growth was attributed to good harvest season experienced in season A. Overall, export crops decreased by 24 % mainly due to the decrease in production of coffee and tea.
Meanwhile manufacturing grew by 7% boosted by Made in Rwanda policy actions. Food processing increased by 13 % while production of chemicals, rubber and plastics that rose by 28 %.
Real estate activities increased by 8%, while administration and support services activities increased by 25 %.