Rwanda’s economy grew by 20.6 percent in second quarter of 2021

On 16 September 2021 at 06:40

The National Institute of Statistics of Rwanda (NISR) has revealed that Rwanda’s economy grew by 20.6% in the second quarter of 2021 while it had plummeted by 12.4% in the same quarter last year.

In the second quarter of 2021, GDP at current market prices was estimated at Rwf 2,665 billion up from Rwf 2,177 billion of the same quarter in 2020.

The statistical report released on Wednesday 15th September 2021 shows that the service sector was the main contributor to the Gross Domestic Product (GDP) with 47%, followed by agriculture (25%) and industry (19%) while 9 % was attributed to adjustment for taxes and subsidies on products.

Unlike the past year, figures released yesterday reflect a good progress on economic recovery from adverse effects of COVID-19 pandemic due to instituted measures to prevent the spread of the virus.

Overall, the GDP grew by 20.6%, while other sectors of the economy including agriculture, industry and services grew by 7%, 30% and 24% respectively.

Overall, agricultural activities grew by 7 percent and contributed 2.0 percent to overall GDP growth.

Within agriculture, the production of food crops increased by 7 percent while the production of export crops decreased by 2 percent.

Industrial activities grew by 30 percent and contributed 5.1 percentage points to GDP growth. The main contributors in the industry sector were construction activities, which grew by 33 percent, and manufacturing activities, which grew by 23 percent. Mining and quarrying activities also increased by 87 percent.

Among others, the growth in manufacturing activities is due to an increase of 111 percent in the production of furniture and other manufacturing, 11 percent in food processing, 39 percent in production of chemicals, rubber and plastic products as well as 47 percent in metal products, machinery and equipment.

Service activities grew by 24 percent and contributed 10.8 percentage points to GDP growth.

Within services sector, wholesale and retail trade increased by 34 percent, transport increased by 48 percent, education increased by 168 percent, information and communication increased by 28 percent while financial services increased by 19 percent.

As per released report, total final consumption expenditure increased by 46 percent in the second quarter of 2021, with household final consumption increasing by 52 percent.

Government final consumption increased by 20%, imports remained constant at 0 percent growth while exports and gross capital formation decreased by 7 percent and 58 percent respectively.

Figures released on Wednesday 15th September 2021 show that Rwanda’s economy grew by 20.6 percent in the second quarter of 2021.