Rwanda’s economy experienced growth by 9.8% in Q2 2024
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Loading... - Yvonne Muli
- 18 Sep 2024
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Rwanda's economy grew by an impressive 9.8 percent in the second quarter of 2024, primarily fueled by the services sector, which contributed 47 percent to the country's Gross Domestic Product (GDP), according to official data released by the National Institute of Statistics (NISR) and the Ministry of Finance and Economic Planning on September 16.
At current market prices, Rwanda's GDP was valued at Rwf4,515 billion, up from Rwf3,972 billion during the same period in 2023. This growth builds on the 9.7 percent increase observed in the first quarter of 2024, though overall annual growth is conservatively projected at 6.6 percent, accounting for uncertainties such as global economic shocks. In comparison, Rwanda's economy expanded by 8.2 percent in 2023.
Minister of Finance Yusuf Murangwa highlighted the cautious projection, stating that despite positive quarterly growth, the forecast factors in unpredictable challenges like climate shocks. However, Murangwa expressed optimism about the economy’s trajectory, depending on the performance in the remaining two quarters.
The services sector saw a 10 percent increase, continuing to play a vital role in economic growth. Agriculture also posted a 7 percent rise, driven by a strong harvest in season A of 2024, which resulted in an 8 percent increase in food crop production. This boosted food supply and helped stabilize consumer prices, easing inflation.
Industry grew by 15 percent, with the construction sector expanding by 18 percent and manufacturing by 17 percent. Notably, food processing increased by 18 percent, textiles and leather products by 28 percent, and metal products, machinery, and equipment by 29 percent. Production of chemicals, rubber, and plastic products also grew by 20 percent. However, the mining sector faced challenges, with a 2 percent decline in mining and quarrying activities, largely due to reduced exports of coltan and cassiterite, which dropped by 8 percent and 9 percent, respectively.
Overall, the data shows continued strong economic performance, with notable gains in services, agriculture, and industry, though challenges in the mining sector remain.
