MINECOFIN

MINISTRY OF FINANCE AND ECONOMIC PLANNING

REPUBLIC OF RWANDA

Economy registers 6.7% growth in the second quarter of 2018

Posted on 19.09.2018

Rwanda’s Economy expanded by 6.7% in the second quarter of 2018 compared with the same period last year. The Growth Domestic Product (GDP) for the second quarter at market prices was estimated at Frw 2 trillion up from Frw 1.896 trillion in the second quarter of 2017.

According to the numbers released by the National Institute of Statistics of Rwanda, agriculture grew by 6%, industry by 10% while services registered 5% growth.

“There is positive growth across all sectors. Manufacturing has performed well compared to the same period last year which is supported by Made in Rwanda initiatives which are having a positive impact on growth,” Dr. Uzziel Ndagijimana, the Minister of Finance and Economic Planning said.

On whether, Government planned to revise the 7.2% growth forecast for 2018, Minister Ndagijimana assured that current growth indicated that the economy was on track to achieve the projected growth. “We are maintaining the 2018 growth projections. We still have six months to monitor the performance of the economy,” Minister Ndagijimana added.

Growth in the Agriculture sector was driven by 6% growth for food crops in season A, as well as export crops which also grew by 6% supported by increased coffee and tea production.

The industry sector growth was buoyed by the manufacturing and construction activities which registered 12% and 11% increase respectively. Under manufacturing, food processing rose by 19% supported by 32% increase in cereal processing and 6% from processed tea, coffee and sugar. Furthermore, textile, shoes and leather goods production increased by 13% while production of construction materials and metallic products rose by 37%. 

“We have noticed that construction is gaining momentum with the 11% growth in second quarter following 8% observed in the first quarter,” Ivan Murenzi, the deputy Director General of the National institute of Statistics of Rwanda said.

Growth in the service sector was attributed to several activities. These include increase in wholesale and retail trade which recorded 11% growth as a result of increased tradable agriculture and manufactured products. Transport sector grew by 13% boosted by air transport which increased by 17%.  information and communication grew by 18% financial services grew by 7% while public administration increased by 4%.

In in the second quarter of 2018, total final consumption expenditure increased by 3%, with household final expenditures increasing by 4%. Exports increased by 5% while imports increased by 7%. Gross capital formation increased by 21% mainly due to imports of capital goods.


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