Rwanda’s economy grew by 8.9% in 2024, driven by key sectors: services (48%), agriculture (25%), and industry (21%). Quarterly growth rates were strong throughout the year, and inflation stabilized at around 6%. The government remains confident in achieving a 7% growth projection for 2025 amid regional challenges, supported by strategic economic plans.
Rwanda’s economy demonstrated robust growth, achieving an 8.9% increase in 2024 compared to the prior year, mainly due to strong performances across the services, agriculture, and industry sectors. This growth is highlighted in the latest statistics from the National Institute of Statistics of Rwanda (NISR), released on March 19. Minister of Finance and Economic Planning, Yusuf Murangwa, reported significant quarterly GDP growth rates of 9.7% in Q1, 9.8% in Q2, 8.1% in Q3, and 8% in Q4.
In terms of GDP at current market prices, Rwanda’s total reached Rwf18.785 billion, up from Rwf16.626 billion in 2023. The services sector played a predominant role, accounting for 48% of GDP, while agriculture contributed 25% and industry represented 21%. The agriculture sector experienced a 5% increase, with industry and services each growing 10%.
The improved performance in domestic agriculture was pivotal in stabilizing inflation, which currently stands around 6%, a decrease from the double-digit inflation seen in 2023. Food crop production drove agricultural growth, rising by 5% due to favorable harvests across seasonal cycles, with Season A showing an 8% increase and Season B a 2% increase. Conversely, export crop production saw a slight decline of 1%.
NISR indicated that private final consumption expenditure accounted for 70% of the economy, while government expenditure represented 17%, and gross capital formation constituted 21%. Minister Murangwa expressed confidence in the forecasted 2025 economic growth of 7%, despite regional and geopolitical challenges, stating that these issues are manageable without widespread negative impact on the broader economy.
Murangwa conveyed optimism about maintaining economic stability, asserting that potential setbacks in agriculture would not derail projected growth. He emphasized that the reductions in development aid from some partners would not significantly affect Rwanda’s economic direction, thanks largely to the National Strategy for Transformation (NST2), which ensures the country’s resilience and diversity in economic structure.
Rwanda’s economy showed significant resilience and growth in 2024, reflecting strong sectors such as services, agriculture, and industry. Projections for continued growth in 2025 remain optimistic, with an expectation of 7% despite potential challenges. The government’s strategic plans, particularly the NST2, are crucial in sustaining economic stability and addressing potential downturns, highlighting Rwanda’s commitment to self-reliance and resilience against external shocks.
Original Source: www.newtimes.co.rw
