Rwanda’s Second Quarter GDP Shows Robust Growth Amidst Global Challenges

Rwanda’s economy is expected to remain resilient despite ongoing global shocks and external crises affecting trade and economies throughout the remainder of the year.

Rwanda’s Gross Domestic Product (GDP) for the Second Quarter (Q2) of 2024, at the market price increased to Rwf 4,515 billion, up from Rwf 3,972 billion in Q2 2023, according to the GDP figures announced on Monday, September 16, 2024, by the National Institute of Statistics of Rwanda (NISR) and the Ministry of Finance and Economic Planning (MINECOFIN).

The GDP was primarily influenced by services, agriculture, and industry, with services contributing 47%, agriculture contributing 25%, industry contributing 21%, and net direct taxes accounting for 7%.

NISR Predicts Rwanda’s economy will maintain a positive trajectory, with a projected 6.6% growth rate in 2024, supported by strong service, industrial, and agriculture sectors.

The GDP saw a 9.8% increase in Q2 2024, following a 9.7% growth in Q1 2024. The GDP growth in major sectors showed a positive trend, with agriculture experiencing a 7% increase, industry experiencing a 15% increase, and services experiencing a 10% increase.

Ivan MURENZI, Director General of NISR, reported a 9.3% average growth in the fiscal year 2023-24, primarily due to the growth recorded in the last four quarters.

He said, “The agriculture sector experienced a 7% growth, with food crop production increasing by 8% due to a strong 2024 season, but export crop production declined by 6%.”

He added, “The industrial sector experienced a 15% growth, primarily due to an 18% increase in construction activities and a 17% rise in manufacturing. Mining and quarrying experienced a 2% decline in Q2 2023, with Coltan exports down 8% and Cassiterite exports down 9%.”

Manufacturing growth increased by 18% in food processing, 28% in textiles, clothing, and leather, 29% in metal products, machinery, and equipment, and 20% in chemicals, rubber, and plastic production.

The services sector experienced a 10% growth, with wholesale and retail trade expanding by 10% and transport activities growing by 9%, primarily due to a 25% increase in air transport and 5% in land transport.

Additionally, the report predicts a 20% rise in hotels and restaurants, a 10% rise in financial services, and a 33% growth in information and communication services.

In the Second Quarter (Q2) of 2024, GDP expenditure primarily consisted of private final consumption of 65% of GDP, government consumption of 19%, and gross capital formation of 30%, with a 19% increase in total final consumption expenditure, exports increased by 14%, and imports increased by 49%.

Yusuf MURANGWA, Minister of Finance and Economic Planning (MINECOFIN), reported a positive Q2 performance despite global crises and conflicts, indicating continued recovery.

He stated that the economy is performing well, with the agriculture sector experiencing a seven percent growth, industry experiencing a 15% growth, and services experiencing a 10% growth.

He noted that the manufacturing of goods and products increased by 18 percent, indicating a positive trend, “The growth of 10% in textile manufacturing, 28% in wood processing, and 18% in construction, along with the overall increase of 12%, is a positive indicator.”

Minister Murangwa praised the economy’s working fundamentals and anticipates continued improvement in sectors, stating that the government’s outlook is promising.