Rwanda’s GDP grows by 7.5% in third quarter of 2023

On 16 December 2023 at 07:01

In the third quarter of 2023, Rwanda’s economic landscape witnessed remarkable growth, with the Gross Domestic Product (GDP) reaching Rwf 4,249 billion, marking a substantial increase from Rwf 3,584 billion in the same quarter of 2022—an impressive surge of 7.5%.

According to data released by the National Institute of Statistics of Rwanda (NISR), the services sector played a significant role, contributing 46% to the GDP, followed by the agriculture sector at 25%, the industry sector at 21%, and net direct taxes accounting for 7%.

Estimates recalculated at 2017 prices revealed that the GDP for this quarter was 7.5% higher compared to the same period in 2022.

Breaking down the sectoral contributions, the agricultural sector experienced a growth of 3%, contributing 0.7 percentage points to the overall GDP growth. While food crops production increased by 3%, there was a notable decline of 15% in the production of export crops.

The industrial sector showed robust growth, expanding by 14% and contributing 2.3 percentage points to the overall GDP growth. This growth was driven by a 14% increase in mining and quarrying, an 8% rise in manufacturing activities, and an impressive 24% surge in construction activities. Notably, manufacturing saw notable increases in food processing (16%), textiles, clothing, and leather goods (14%), wood and paper manufacturing (17%), and chemicals, rubber, and plastic products (10%).

The service sector emerged as a powerhouse, growing by 19% and contributing 4.4 percentage points to the overall GDP growth. Key contributors within services included an 8% increase in wholesale and retail trade, a 16% rise in transport services, a 5% growth in hotels and restaurants, and a substantial 20% increase in telecommunication services. While public administration services increased by 2%, education services surged by 16%. However, health services experienced a 2% decrease, following a 13% growth in the same quarter of 2022.

In terms of consumption and trade, total final consumption expenditure increased by 3% in the third quarter of 2023. Household final consumption expenditure saw a noteworthy 8% increase, contrasting with a 15% decrease in government final consumption expenditure. Exports of goods and services increased by 11%, while imports increased by 9%. Additionally, gross capital formation displayed an impressive surge of 26%.

This robust economic performance showcases Rwanda’s resilience and dynamism, setting the stage for continued growth and prosperity in the quarters to come.