Rwanda’s economy, as measured by gross domestic product (GDP), amounted to more than Rwf5.79 trillion in the second quarter (Q2) of 2025, representing a growth of 7.8 per cent compared to the same period in 2024.
The National Institute of Statistics Rwanda (NISR) pointed out that all the presented figures were calculated using the new 2024 base year – different from the previous statistics that used 2017 as the base year for determining GDP.
The new figures were announced on September 17, in Kigali, by the NISR officials.
In the period under review, the services sector contributed 50 per cent to the overall GDP, agriculture 23 per cent, while industry contributed 21 per cent. Net direct taxes accounted for 5 per cent.
The agriculture sector recorded an 8 per cent increase, industry grew by 7 per cent, and services improved by 9 per cent.
Within agriculture, food crop production increased by 3 per cent. The export crop production rose by 42 per cent due to an increase of 121 per cent in the production of coffee, benefiting from favourable international market prices and previous efforts in coffee replantation and coffee tree rejuvenation, NISR indicated.
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"Some time back, we communicated that there have been changes in coffee production, especially planting new trees needed for better yield, and we see that resulting into this increase in production as well as growth,” said Ivan Murenzi, the Director General of NISR.
However, for tea, production decreased by 9 per cent, the figures show.
Within the industry sector, mining and quarrying increased by 12 per cent, construction activities increased by 5 per cent, while manufacturing activities increased by 8 per cent.
The growth in manufacturing was boosted by a 10 per cent growth in food processing, a 19 per cent increase in manufacturing of metal products, machinery, and equipment.
There was also a 24 per cent growth in manufacturing of chemicals, rubber & plastic products, and a 23 per cent growth in manufacturing of non-metallic minerals (mainly cement).
On the other hand, the manufacturing of textiles, clothing and leather decreased by 9 per cent while beverages and tobacco decreased by 4 per cent.
Within services, wholesale and retail trade increased by 13 per cent; transport activities increased by 5 per cent with air transport decreasing by 13 per cent, while land transport grew by 10 per cent.
Among other services, hotels and restaurants decreased by 7 per cent following a high growth of 18 per cent in the same quarter of 2024.
Financial services increased by 8 per cent, and information and communication services increased by 11 per cent, public administration increased by 16 per cent, education services increased by 5 per cent while health services increased by 10 per cent.
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Reason behind changing base year
NISR stated that it concluded the rebasing of GDP or adjustment of the reference year, which is an internationally recommended activity – done every five to 10 years – to reflect changes in the economy over time.
The exercise provides a more comprehensive and accurate level of the economy, and measures the structural changes caused by factors such as price changes, shifts in the relative importance of goods and services, emerging of new economic activities, and shifts in production technologies.
The results of the 2024 rebasing show that the GDP of 2024 was 6 per cent higher than the previously published figure of more than Rwf18.78 trillion, which has been updated to more than Rwf19.9 trillion as a result, it indicated.
"Now, with that change in the levels of GDP, it implies that the computations of growth have also adjusted. The resultant change in growth in 2024: we had published a growth of 8.9 per cent. But now with these changes, the growth changed to 7.2 per cent,” Murenzi said.
Meanwhile, GDP growth in Q1 of 2025 grew by 6.5 per cent – down from 7.8 per cent that was reported earlier, using the 2017 as the base year.