In 2020, COVID-19 had a profound impact on Rwandan economy. In addition to the public health challenge, COVID-19 had also severely affected many economies following measures that were and are still being implemented to contain the spread of the virus.
Apart from the 1st Quarter that was not hit hard by the pandemic, the remaining 3 Quarters recorded negative growths whereby the 1st quarter grew by 3.7%; 2nd quarter: -12.4%; 3rd quarter: -3.6%; and 4th quarter by -0.6%.
This led to a 3.4% drop in economic growth for the year 2020. Even though restrictive measures to contain the spread of the virus were gradually relaxed since May 2020, economic activities have not recovered fully to pre COVID–19 levels.
Activities related to hospitality industry as well as Education continued to be the most affected.
In 2020, Services contributed 46% to GDP, Agriculture contributed 26% while Industry contributed 19%. Net direct taxes accounted for 8%.
In 2020, GDP decreased by 3.4% compared to the growth of 9.5% in 2019.
The agriculture sector increased by 1%, industry dropped by 4% while services dropped by 6%.
Although the country expects the situation to improve in 2021 going forward; Hotel and restaurants were the most affected dropping by 40% followed by Education which dropped by 38% and Transport activities that dropped by 24%.
Among others, wholesale and retail trade dropped by 3% in 2020, construction activities also dropped by 6% following a high growth of 33% recorded in 2019.
However, Information and communication sector grew by 29% while Health sector grew by 19% due to efforts taken to contain Covid-19 pandemic.