September 16, 2024

Rwanda's economy experienced a growth rate of 9.8% in the second quarter of 2024, following a 9.7% increase in the first quarter. This growth is largely attributed to the robust performance of the industrial and services sectors. Notably, the agriculture sector showed significant improvement during Season A of 2024 compared to the same period in 2023, particularly in the production of food crops, which saw substantial growth.

According to data released by the Institute of Statistics of Rwanda, the GDP at current market prices was estimated at Frw 4,515 billion, a significant increase from Frw 3,972 billion recorded in the second quarter of 2023. The contributions to GDP were as follows: services sector (47%), agriculture sector (25%), industry sector (21%), and net direct taxes (7%).

The agriculture sector exhibited a growth rate of 7%, with food crop production witnessing an 8% increase due to a successful harvest in Season A of 2024. However, export crop production declined by 6% compared to Q2 2023.

The industrial sector experienced a remarkable growth of 15%, primarily driven by an 18% increase in construction activities and a 17% rise in manufacturing. Manufacturing growth was bolstered by an 18% increase in food processing, a 28% rise in textiles, clothing, and leather production, a 29% increase in metal products, machinery, and equipment manufacturing, and a 20% growth in the production of chemicals, rubber, and plastic products.

The services sector recorded an overall growth of 10%. Within this sector, wholesale and retail trade expanded by 10%, transport activities grew by 9%, air transport surged by 25%, and land transport increased by 5%. Additionally, hotel and restaurant services grew by 20%, financial services by 10%, and telecommunication services by an impressive 33%.