Rwanda’s Economy Achieves 8.9% Growth in 2024 Amidst Challenges

Rwanda’s economy grew by 8.9% in 2024, driven largely by the services, agriculture, and industry sectors. The GDP reached Rwf18.785 billion, with agriculture expanding due to increased food production. Minister Murangwa remains optimistic about a 7% growth projection for 2025, despite challenges from decreased development aid and regional tensions.

Rwanda’s economy has exhibited impressive growth of 8.9% in 2024 when compared to the previous year. This expansion is primarily attributed to substantial advancements in the services, agriculture, and industry sectors. The information was disclosed on March 19 by the National Institute of Statistics of Rwanda (NISR). According to Yusuf Murangwa, Minister of Finance and Economic Planning, the quarterly gross domestic product (GDP) expansions were 9.7% in Q1, 9.8% in Q2, 8.1% in Q3, and 8.0% in Q4.

The GDP at current market prices is now estimated at Rwf18.785 billion, an increase from Rwf16.626 billion in 2023. In terms of sector contributions, the services sector dominated at 48%, followed by agriculture at 25%, and industry at 21%. Agriculture showed growth of 5%, while both industry and services experienced a notable increase of 10%. Minister Murangwa noted, “Our agriculture sector continues to recover from previous modest performances, and we are seeing the sector grow at a much higher rate.”

The robust performance in agriculture has played a significant role in stabilizing inflation, which currently stands around 6% compared to higher levels in 2023. Within agriculture, food crop production saw a 5% increase attributed to favorable harvests, with Season A yielding an 8% boost and Season B an increase of 2%. However, export crop production slightly declined by 1%.

Additional data from NISR indicated that private final consumption expenditure accounted for 70% of economic activities, while government final consumption made up 17% and gross capital formation reached 21%. Looking ahead, Minister Murangwa expressed confidence in achieving a growth projection of 7% for 2025, despite existing regional challenges. He stated that the government is prepared to intervene to maintain stability, asserting, “We are very optimistic and extremely confident in maintaining economic stability.”

Furthermore, Murangwa highlighted that the decrease in development aid from certain partners has not adversely impacted Rwanda’s economic growth, primarily due to the resilience fostered by the National Strategy for Transformation (NST2), which reflects Rwanda’s commitment to a diverse and self-reliant economy.

In conclusion, Rwanda’s economy reported a notable growth rate of 8.9% for 2024, buoyed by significant contributions from the services, agriculture, and industry sectors. The government projects continued growth, reflecting resilience amidst challenges. With private consumption driving much of the growth, Rwanda is strategically positioning itself for future stability and expansion, emphasizing self-reliance and robust sectoral developments.

Original Source: www.newtimes.co.rw