Rwanda’s economy grew by 8.9% in 2024, driven by strong performances in various sectors. Key contributors include services, agriculture, and industry, with significant quarterly GDP growth. Minister Murangwa expresses confidence in future growth despite regional challenges and reduced development aid. The economy shows resilience and stability, supported by effective national strategies.
The economy of Rwanda witnessed a significant growth of 8.9% in 2024, as reported by the National Institute of Statistics of Rwanda (NISR). This impressive growth was primarily driven by robust performances in the services, agriculture, and industry sectors. Minister of Finance and Economic Planning, Yusuf Murangwa, highlighted that quarterly GDP growth reached 9.7% in the first quarter, 9.8% in the second, 8.1% in the third, and 8% in the fourth quarter, resulting in an annual rate of 8.9%.
At current market prices, Rwanda’s GDP surged to Rwf18.785 billion in 2024 from Rwf16.626 billion in 2023. The services sector was the leading contributor to the economy, comprising 48% of the GDP, followed by agriculture at 25% and industry at 21%. The agriculture sector saw a growth of 5%, while both the industry and services sectors expanded by 10% each.
Murangwa noted that the agriculture sector is showing signs of recovery and growth owing to favorable conditions in 2024. This improvement in agriculture is crucial for stabilizing inflation, which is currently at approximately 6%, a notable decrease from the higher rates experienced in 2023. It was also reported that food crop production rose by 5% due to productive agricultural seasons, even though export crop production faced a slight decline of 1%.
Further, NISR revealed that private final consumption expenditure constituted 70% of the economy, government expenditure accounted for 17%, and gross capital formation was 21%. Looking ahead, Murangwa expressed confidence in a projected 7% growth for 2025, despite possible challenges posed by geopolitical tensions. He asserted that the government is prepared to ensure economic stability and effectively navigate any market fluctuations.
Despite reductions in development aid from some partners, Minister Murangwa expressed that the effects on Rwanda’s overall economic progress remain limited, attributing this resilience to the National Strategy for Transformation (NST2) which fosters a self-reliant and diverse economic structure.
In summary, Rwanda’s economy demonstrated remarkable growth of 8.9% in 2024, fueled by key sectors such as services, agriculture, and industry. The government expresses optimism for continued growth in the coming years, emphasizing resilience against external challenges and the efficacy of their national strategies. Minister Murangwa’s insights reflect a positive outlook for Rwanda’s economic stability and recovery, particularly in agriculture and domestic consumption.
Original Source: www.newtimes.co.rw
