Rwanda’s economy grew by 6.1 per cent in 2017 exceeding projections
Rwanda’s economy grew by 6.1% in 2017 beating 5.2% projections set earlier. The growth is attributed to good performance in the fourth quarter which registered 10.5% growth, rebounding from the slowdown in the first quarter where the economy grew by 1.7%.
Figures released by the National Institute of Statistics of Rwanda indicated that in 2017, Rwanda’s Gross Domestic Product (GDP) was estimated at Rwf7,597 billion up from Rwf6,672 billion in 2016.
The Minister for Finance and Economic Planning, Claver Gatete, noted that the economy was on the right foot after total annual growth for 2017 has exceeded projections.
The actual figures on last year’s economic performance will guide the planning of the next budget for the country as well as the economic growth projections for the current year 2018. It is going to help us in terms of looking forward,” Minister Gatete said.
Growth was mostly driven by agriculture, industry, and services which contributed 31%, 16 %, and 46%, respectively.
The main driving sectors of the economy, which are agriculture, industry, and services, posted positive growth rates in the fourth quarter, with agriculture and industry growing 10 per cent while services grew by 11 per cent.
Growth in agriculture was boosted by a good harvest of food crops in season B and C while growth in industry was mainly due to an increase of 51 per cent in mining and quarrying products.
In manufacturing, food processing increased by 16 per cent boosted by processing of cereals while textile, clothes, and leather products increased by 19 per cent.
Growth for the service sector was driven by wholesale and retail trade which increased by 19 per cent while transport activities increased by 16 per cent boosted by air transport. The statistics body said that administrative and support service activities increased by 37 per cent while financial sector increased by 14 per cent.