Rwanda’s GDP grows by 7.9 percent

On 16 June 2022 at 01:20

Rwanda’s Gross Domestic Product (GDP) in the first quarter of 2022 has grown by 7.9 percent reaching Rwf3,025 billion from Rwf2,588 of the same quarter in 2021 owing to economic recovery efforts.

As per figures released by the National Institute of Statistics (NISR) for the quarter ended on 31st March 2022 , agriculture registered 1 percent growth in the first quarter, industries grew by 10% while the service sector grew by 11%.

Overall, services sector remained the main contributor with 47 percent of GDP, agriculture sector contributed 23 percent, industry sector contributed 22 percent while net direct taxes accounted for 8%.

Agricultural activities grew by 1 percent and contributed 0.6 percentage points to overall GDP growth. Within agriculture, the production of food crops decreased by 1 percent and the production of export crops increased by 14 percent too.

In the industry sector, the main contributors were construction activities which grew by 6 percent, manufacturing activities which grew by 11 percent. Mining and quarrying activities also increased by 16 percent.

The growth in manufacturing activities is due to an increase of 6 percent in food processing, 12 in beverages and tobacco, 20 percent in wood and paper; printing, 19 percent in production of chemicals and plastic products and 22% in textiles.

Within services sector; information and communication services increased by 17 percent, professional, scientific and technical activities increased by 5 percent, real estate activities increased by 5 percent while education increased by 2 percent.

NISR also shows that Human health and social work activities increased by 22 percent, hotel and restaurant services by 80 percent, administrative and support services by 6 percent and public administration and defense; compulsory social security by 7 percent.

The Deputy Director General of NISR, Ivan Murenzi has said that the global economy is currently facing issues related to the supply chain and effects of the war between Russia and Ukraine.

He attributed the GDP growth to expended efforts including vaccination campaign to inoculate a large number leading to eased COVID-19 restrictions for businesses to resume.

Rwanda’s GDP has grown by 7.9 percent in first quarter of 2022.