Rwanda registers double-digit growth as more sectors recover from Covid-19

Rwanda’s GDP grew by 10.9 percent in 2021 to reach Rwf10,944 billion, up from a contraction of 3.4 percent in 2020. The outlook is contained in the latest report issued on Monday by the National Institute of Statistics of Rwanda (NISR). The figures, according to the Minister of Finance and Economic Planning, Uzziel Ndagijimana reflect a sharp bounce back from an initial projection of 5.6 percent. Meanwhile, Yusuf Murangwa, Director General of NISR maintained that Covid-19 continued to have a profound impact on the global and Rwanda’s economy. However, he added, there was a strong recovery from the second quarter which hit a record-high of 20.6 percent increase. “Most sectors have recovered beyond their pre-covid levels apart from crop exports, mining, hotels and restaurants, transport and support services that rely on tourism,” Murangwa said. In particular, services contributed 48 percent to the GDP, agriculture contributed 24 percent, and the industry sector contributed 20 percent with net direct taxes accounting for 8 percent. This reflects an increase of 6 percent in agriculture, 13 percent in industry, and 12 percent in services, according to the NISR report. While food crops in agriculture increased by 7 percent due to good harvest across agriculture seasons, Murangwa pointed out that export crops dropped by 1 percent due to a 1 percent drop in coffee production. However, tea production increased by 7 percent. Growth in manufacturing According to the report, growth in industry is attributed to good performance of manufacturing activities which increased by 11 percent boosted by an increase of 6 percent in the production of beverages. Also increased by 16 percent is textiles, clothing and leather goods, 23 percent in chemicals, rubber and plastic products as well as 4 percent in metal products, machinery and equipment. Mining and quarrying demonstrated an increase of 27 percent, while construction increased by 15 percent. Commenting on the growth in services, officials told The New Times that the growth was due to a 12 percent growth in wholesale and trade activities, 20 percent in hotel and restaurants, 15 percent in transport services. Financial services also increased by 18 percent, with telecommunication services increasing by 19 percent. Another sharp rise of 59 percent was highlighted in education, and 35 percent increase in maintenance and repair of monitor vehicles. Over 7 per cent increase projected When asked about the projections for 2022, Minister Ndagijimana told the media that Rwanda has initially projected her economy to grow by 7.2 percent. “This is an initial projection which is subject to revision as we continue to monitor trends in both the global and local economy,” he said. The development comes at a time the government is planning to adjust its public spending to accelerate economic recovery from the Covid-19 effects, characterised by job losses, disruption in international travels and global supply chains.

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Rwanda registers double-digit growth as more sectors recover from Covid-19