Rwanda’s Economy Experiences Significant Growth of 8.9% in 2024

Rwanda’s economy grew by 8.9% in 2024, led by robust performance in services, agriculture, and industry. GDP reached Rwf18.785 billion, with services dominating at 48%. Minister Murangwa projects 7% growth for 2025 amid regional challenges. Agricultural recovery stabilizes inflation at 6%.

Rwanda’s economy has exhibited a commendable growth rate of 8.9% in 2024, as revealed by the National Institute of Statistics of Rwanda (NISR) on March 19. The growth has been primarily propelled by notable advancements in the services, agriculture, and industry sectors. Minister of Finance and Economic Planning, Yusuf Murangwa, confirmed this upward trajectory through quarterly GDP expansions of 9.7% in the first quarter, 9.8% in the second, 8.1% in the third, and 8% in the fourth quarter.

The total Gross Domestic Product (GDP) at current market prices was estimated at Rwf18.785 billion, marking an increase from Rwf16.626 billion in 2023. The services sector emerged as the largest contributor to this growth, responsible for 48% of the GDP, while agriculture accounted for 25% and industry comprised 21%. In terms of growth rates, both the agriculture and services sectors expanded by 10%, with agriculture reflecting a 5% growth, signaling a recovery from prior modest performances.

Inflation, which is currently stabilized at around 6%, has benefitted from the robust performance of domestic agriculture. Within the agriculture sector, food crop production has seen an increase of 5%, attributed to fruitful harvests during both agricultural seasons. Specifically, the Season A harvest rose by 8%, while Season B improved by 2%. However, it is pertinent to note a 1% decrease in export crop production, as reported by NISR.

Minister Murangwa expressed confidence regarding the economic outlook for 2025, projecting a growth rate of 7%, despite existing regional and geopolitical challenges. He underscored the government’s preparedness to tackle any obstacles that may arise, indicating that the current issues are manageable and unlikely to yield widespread repercussions on the economy. Furthermore, he affirmed that reductions in development aid will have a limited impact on Rwanda’s economic trajectory, thanks to the National Strategy for Transformation (NST2) agenda that promotes self-reliance and a diverse economic structure.

In summary, Rwanda’s economy has demonstrated impressive growth in 2024, driven by substantial contributions from the services, agriculture, and industry sectors. With proactive measures in place to address potential challenges, the government expresses confidence in achieving its growth projections for 2025. The resilience of the domestic agriculture sector and the effective implementation of strategic plans position Rwanda for continued economic stability and progression.

Original Source: www.newtimes.co.rw