Rwanda’s GDP touches four per cent increase.
Written by: Daniel Tuyizere
Monday, September 25th, 2017, 14:57
Rwanda's gross domestic product (GDP) rose by four percent in the second quarter of 2017 compared with the first quarter. The nominal GDP in the second quarter totaled Rwf1,869 billion Rwandan Francs up from Rwf1,636 billion in the same quarter of 2016.
Agriculture increased by six per cent and contributed 1.5 percentage points to the overall GDP growth rate where it is mainly attributed to a god harvest of food crops in season A of four per cent and a 22 per cent increase in export crops. The significant growth in export crops is attributed to an increase in the production of coffee and tea.
The industry sector contributed 15 per cent of the GDP and 7 per cent was attributed to adjustment for taxes and subsidies on products, the slow growth of one per cent is mainly due to a decrease of four per cent in construction activities compared to the same period in 2016.
On the other hand, manufacturing activities increased by six percent boosted by food processing activities and manufacturing of chemicals, rubber and plastic which grew by 10 and 28 per cent respectively.
Activities in services sector increased by 7 per cent and the main contributors are, administrative and support services which grew by 20 per cent, professional, scientific and technical services which grew by 21 per cent, real estate activities which grew by 7 per cent and public administration which grew by 10 per cent.
In the service sector, hotel and restaurants continued to grow by nine per cent maintaining the positive development in conference tourism.
Wholesale and retail trade decreased by six per cent due to overall decrease in imports of traded goods.
According to the Minister of Finance and Economic Planning, Claver Gatete, quarter three and four are expected to perform well due to booming construction activities and encouraging season B. the drivers of growth will be services, agriculture and changing landscape of industry sector driven by Made in Rwanda.