Rwanda is likely to maintain its lead in registering the highest rate of economic growth within the East African Community (EAC) this year, if predictions set by the World Bank in its latest report on the prospects of the global economy come to pass.
The report dubbed “Global Economic Prospects report for 2012”, says that Rwanda will maintain its lead in economic growth within the region set at 7.6 percent.
However, the projection this year is a marginal slowdown to what the Bank says was a higher figure of Gross Domestic Product (GDP) of 8.8 percent registered last year.
Commenting on the report, the Minister of Finance and Economic Planning, John Rwangombwa, told The New Times that the bank’s projection on Rwanda is recognition of the policies set by the government to transform its economy through measures such as the medium term economic framework that is now bearing tangible results.
“It is a good indicator that recognises Rwanda’s high growth path, largely anchored by sound economic policies linked to our vision 2020,” Rwangombwa observed.
He added that the projection was set after consultations with top policy makers in the country. The projections, Rwangombwa says, will mainly be delivered by giving more focus on agricultural and industrial sectors.
The report states that growth in Uganda is expected to drop from an estimated 6.3 percent in 2011 to 6.2 percent in 2012 while Tanzania’s GDP is expected to see an improved performance from an estimated 6.4 percent in 2011 to 6.7 in 2012 and 6.9 percent in 2013.
The report states that the global GDP is projected to slow down significantly for the next two years with high-income economies more affected than developing countries.
“Sub-Saharan Africa was one of the fastest growing regions in 2011, but remains vulnerable to outturns in the global economy,” the report says adding that: “While developing countries are in much better shape than high-income countries, they remain vulnerable to significant downside risks”.
The World Bank says that Rwanda’s nominal GDP has been witnessing a steady rise from US$4.7 billion in 2008 jumping to US$5.7 billion in 2010.
The bank projects that Rwanda’s nominal GDP that is looking at growth, minus inflation, will be US$7.0 billion this year and will further rise to US$7.8 billion next year.