Rwanda’s GDP grows by 6.3% in second quarter of 2023

On 19 September 2023 at 05:14

Rwanda’s Gross Domestic Product (GDP) witnessed substantial growth during the second quarter of 2023, surging to Rwf 3,970 billion from Rwf 3,282 billion in the same period the previous year. The National Institute of Statistics of Rwanda (NISR) released these figures on Monday, indicating a 6.3% increase following a 9.2% growth in the first quarter.

During the second quarter, the service sector contributed 45% of GDP, agriculture contributed 27%, industry contributed 20%, while net direct taxes accounted for 7%. The agriculture sector did not exhibit any growth when compared to the second quarter of 2022. Within agriculture, export crops increased by 2%, buoyed by a 14% increase in tea production, although coffee production decreased by 11%. The production of food crops decreased by 3% due to a lower harvest in Season A of 2023 compared to Season A of 2022.

The industry sector grew by 6%, contributing 1.1 percentage points to the overall GDP growth. Within the industry, mining and quarrying activities increased by 7%, manufacturing activities grew by 8%, while construction activities increased by 4%.

The growth in manufacturing is primarily attributed to a 9% increase in food processing, a 6% increase in the manufacturing of metal products, machinery, and equipment, a 14% increase in the manufacturing of chemicals, rubber, and plastic products, a 32% increase in the manufacturing of wood and paper printing, and a 9% increase in the manufacturing of non-metallic minerals. However, manufacturing of beverages decreased by 2%.

The service sector increased by 10%, contributing 4.8 percentage points to overall GDP growth. Within services, wholesale and retail trade increased by 6%, while transport services increased by 8%.

Among other services, hotel and restaurant services increased by 7%, information and communication services increased by 37%, financial services increased by 5%, professional, scientific, and technical activities increased by 1%, real estate activities increased by 2%, while education services increased by 28%, public administration increased by 21%, and health services increased by 7%.

In the second quarter of 2023, total final consumption expenditure increased by 3%, with household final consumption decreasing by 4%, while government final consumption increased by 31%. Exports of goods and services increased by 23%, while imports of goods and services decreased by 4%. Gross Capital Formation decreased by 9%.

The bird view of Kigali Special Economic Zone in Masoro. The growth in manufacturing is primarily attributed to a 9% increase in food processing.