Rwanda: Rwandan economy grew 4% in Q2, 2017 - Official

25 Septembre 2017

KIGALI, Rwanda, September 25 (Infosplusgabon) - Rwanda's gross domestic product (GDP) grew by 4 per cent in the second quarter of 2017 compared with the first quarter, the country's National Institute of statistics (NISR) said on Monday in Kigali.

Rwanda's GDP in the second quarter totaled 1,869 billion Rwandan Francs (Frw) (US$2.2 billion), up from Frw 1,636 billion (US$1.9 billion) in Q2 2016, the institute said.

NISR's Director General, Yusuf Murangwa, explained that the growth of 6% in the agriculture sector, which has served historically as a mainstay of Rwanda’s economy, was fuelled by the good harvest in season A and increase in export crops.

It is said that the country has recorded good harvests of tea (28% increase) and coffee (8% increase) which contributed the significant growth of exports.

Activities in the services sector increased by 7 per cent in Q2 2017. The main contributors to this trend are, administrative and support services, professional, scientific and technical services, real estate activities and public administration, Murangwa told reporters in Kigali.

Wholesale and retail trade decreased by 6 per cent due to overall decrease in imports of traded goods in the second quarter of 2017, the institute said.

Rwandan officials have emphasised that drivers of economic growth will be services, agriculture and changing landscape of industry sector driven by "Made in Rwanda", a Government's initiative that aims at changing the mind-set of people towards locally made products and boost value addition along the value chain of production.

Since 2015, the East African nation has started implementing a series of strategies to stimulate its domestic market in light of the trade deficit the country is experiencing.

By the year 2020, Rwanda is targeting to join the league of a middle income nations by achieving a per capita income of about US$900 per year, from US$290 now, which will require an annual growth rate of at least 7%, according to official projections.

The East African nation has posted strong growth rates in recent years fuelled by business friendly policies and inflows of foreign investment. The government has forecast 2017 growth at 6.2 per cent and 6.8 percent next year.

FIN/INFOSPLUSGABON/IRD/GABON 2017

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