Rwanda’s economy expanded by 20.6 per cent in the second quarter of 2021 compared to the same period last year, reflecting a strong rebound from the Covid-19 triggered slump. According to the latest data by the National Institute of Statics in Rwanda (NISR), in the second quarter of 2021 gross domestic product (GDP) was estimated Rwf2,665 billion compared to Rwf2,177 billion the same quarter of 2020. The rebound in economic activity was largely driven by the service sector, which accounts for 47 per cent of GDP. Agriculture and industry account for 25 per cent and 19 per cent of GDP respectively. In the second quarter of 2020, the economy had contracted by -12.4 per cent owing to the impacts of Covid-19. In the second quarter of this year, agricultural activities grew by seven per cent and contributed two percentage points to the overall GDP growth. Agriculture activity was driven by increased food crop production, NISR said in a statement, stating that there was a decline in export crops. Industrial activities grew by 30 per cent, contributing 5.1 percentage points to GDP growth. The main contributors in the industry sector were construction activities, which grew by 33 per cent, and manufacturing activities, which grew by 23 per cent. Mining and quarrying activities also increased by 87 per cent. The growth in manufacturing activities is due to an increase of 111 per cent in the production of furniture and other manufacturing, 11 per cent in food processing, 39 per cent in production of chemicals, rubber and plastic products and 47 per cent in metal products, machinery & equipment. According to NISR, services activities grew by 24 per cent, contributing 10.8 percentage points to GDP growth. Within the services sector, the statistics body says, wholesale and retail trade increased by 34 per cent. Transport increased by 48 per cent, education 168 per cent, information and communication 28 per cent while financial services increased by 19 per cent. In the first quarter of 2021, GDP growth was 3.5 per cent. The International Monetary Fund predicts that Rwanda’s economy will grow by 5.1 per cent this year.
