Rwanda’s economy grew by 8.9% in 2024, driven mainly by services, agriculture, and industry sectors. The GDP reached Rwf18.785 billion, with notable increases in private consumption. The government remains confident about maintaining a 7% growth projection for 2025 despite regional challenges.
In 2024, Rwanda’s economy experienced notable growth of 8.9% from the prior year, significantly driven by achievements in the services, agriculture, and industry sectors. This data was announced on March 19 by the National Institute of Statistics of Rwanda (NISR). Yusuf Murangwa, the Finance and Economic Planning Minister, highlighted that the growth was propelled by quarterly GDP increases, recorded at 9.7% in Q1, 9.8% in Q2, 8.1% in Q3, and 8% in Q4.
As reported by the Minister, Rwanda’s GDP at current market prices rose to Rwf18.785 billion, compared to Rwf16.626 billion in 2023. The services sector remains the leading contributor to GDP at 48%, followed by agriculture at 25%, and industry at 21%. Growth in the agricultural sector reached 5%, while industry and services both expanded by 10%.
The performance of the domestic agriculture sector has been instrumental in stabilizing inflation, currently at approximately 6%, a significant decline from double-digit rates in the same period of 2023. The NISR noted, “Within agriculture, food crop production increased by 5 percent due to the good harvests from both agricultural seasons.” Season A harvests increased by 8%, and Season B showed a 2% growth; however, export crop production declined by 1%.
Private final consumption expenditure constituted 70% of economic activity, with government consumption at 17% and gross capital formation at 21%. Despite geopolitical tensions affecting the region, Minister Murangwa expressed strong confidence in the government’s growth projection of 7% for 2025. He asserted, “We are very optimistic and extremely confident in maintaining economic stability.“
Furthermore, he noted that the residual effects of reduced development aid are limited due to the National Strategy for Transformation (NST2), ensuring a robust and self-reliant economic structure.
In summary, Rwanda’s economy has demonstrated considerable resilience with an impressive 8.9% growth in 2024, primarily fueled by advancements in the services, agriculture, and industry sectors. The government’s proactive strategies and stable agricultural performance have helped mitigate inflation and foster economic confidence amid external challenges. Looking ahead, Rwanda’s growth projection remains optimistic, suggesting a commitment to economic stability and self-reliance.
Original Source: www.newtimes.co.rw
