Rwandan economy remained resilient in 2016
Written by: Administrator
Thursday, February 23rd, 2017, 7:49
The Governor of the National Bank of Rwanda (BNR), John Rwangombwa on Wednesday revealed that despite the challenging global and regional economic environment; the Rwandan economy remained resilient, with a growth rate of 6.1% in 2016 from 6.9% in 2015.
The Governor said during a presentation of Monetary Policy and Financial Stability statement at Serena Hotel in Kigali.
This performance was mainly driven by the service sector which grew on average by 7.7 percent from 7.0 percent in corresponding period of 2015 and accounted for 49.7 percent of the total real GDP, followed by the industry sector and agriculture sector with respective shares of 14.6 percent and 29.6 percent in total real GDP.
The central bank has attributed the growth of service sector to the result of various local and international events, notably the 2016 African National Championships (CHAN), the World Economic Forum on Africa, the 27th Summit of the African Union, Kwita Izina, the Global Africa Investment Summit and the Meeting of the Partners to the Montreal Protocol.
The transport sector was mainly helped by Rwandair, which extended its business in 2016 by introducing new six destinations.
Agricultural production contracted in the first three quarters of 2016 having grown by 3.7% down from 5.3% of 2015. Drought has been cited as a responsible factor for this slump.
The industry sector’s production was also moderate in 2016 as it increased by 5.0 percent from 6.7 percent recorded during the corresponding period of 2015. The deceleration was mainly due to instability in the minerals market.
In general World’s economy decreased by 3.1% in 2016 down from 3.2% of 2015 while in Sub-Saharan Africa dropped to 1.6 percent in 2016 from 3.4 percent in 2015, particularly affected by lower commodity prices, droughts in South East African countries and the Ebola disease in Western African countries as well as political tensions in some other countries.
Rwanda economy is expected to rise by 6.0% in 2017 while the Africa Sub-Sahara economy is expected to rise by 2.8% in the same period.