Rwanda’s economy grew by 8.9% in 2024, with notable contributions from services, agriculture, and industry. The GDP reached Rwf18.785 billion, showing robust quarterly growth. Agriculture’s recovery has stabilized inflation, while the government projects a 7% growth for 2025 despite challenges.
Rwanda’s economy achieved an impressive growth rate of 8.9% in 2024 compared to the previous year, as reported by the National Institute of Statistics of Rwanda (NISR) on March 19. This robust growth is attributed to significant advancements in the services, agriculture, and industry sectors. Yusuf Murangwa, the Minister of Finance and Economic Planning, highlighted quarterly GDP expansions of 9.7% in Q1, 9.8% in Q2, 8.1% in Q3, and 8% in Q4 as driving factors of this annual growth.
Minister Murangwa noted that Rwanda’s GDP at current market prices has risen to Rwf18.785 billion, compared to Rwf16.626 billion in 2023. The services sector was the primary contributor to the economy, providing 48% of the GDP, followed by agriculture at 25% and industry at 21%. In terms of growth across sectors, agriculture increased by 5%, while both the industry and services sectors expanded by 10% each.
The minister emphasized the recovery of the agriculture sector, which played a crucial role in stabilizing inflation at approximately 6%, down from double digits in the previous year. Food crop production experienced a commendable increase of 5%, with harvests from Season A and Season B rising by 8% and 2%, respectively, despite a 1% decline in export crop production.
Rwanda’s private final consumption expenditure constituted 70% of the economy, while government final consumption and gross capital formation represented 17% and 21%, respectively. Looking ahead, Minister Murangwa expressed confidence in a projected growth rate of 7% for 2025, maintaining that the government is prepared to address any economic challenges that may arise from regional tensions.
In conclusion, Rwanda’s economy demonstrated robust growth in 2024 primarily driven by strong performances in key sectors, particularly services and agriculture. Minister Yusuf Murangwa remains optimistic about future growth projections despite external challenges, emphasizing the government’s commitment to maintaining economic stability and addressing any uncertainties. The positive recovery in agriculture and significant consumer spending highlight the resilience and potential of Rwanda’s economy going forward.
Original Source: www.newtimes.co.rw
