Rwanda economy grew 5.4 per cent in Q2

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Rwanda’s economy expanded by 5.4% in the 2nd quarter of 2016 compared to the same quarter in 2015.

Statistics released by the National Institute of Statistics indicate good performance of agriculture sector that grew by 3%, industry by -2% while Services registered 9%.

Services continue to lead in terms of shares to GDP with 48% compared to 33% and 13% shares for agriculture and industry respectively.

In agriculture, food crop growth was 4% in 2016 season A. Export crops experienced a sharp decline of -23% mainly due to a -37% drop in coffee output. Tea however increased by 4.7%.

In industry, the -2% decline is mainly due to mining and construction. Key minerals for example; coltan dropped by -62% and wolfram by -49%. Also construction activities dropped by -6%. The drop in construction appears to be due to big projects that were finalized following very high construction activity (15%) in quarter two of 2015.

After very high activity we normally expect to see a slowdown. Going forward, we are already seeing indications of a good recovery in the 3rd quarter of 2016 from further analysis.

Services were mainly boosted by wholesale and retail trade that grew at 13% and contributes about 12% to the economy.

The service sector also benefited from meetings and conferences that are being held in Rwanda and contributing positively to transport especially air transport, communication, financial services, trade, and hotels and restaurants as highlighted below in emerging industries.

Regarding emerging industries, textiles, clothing and leather goods registered an overall growth of 17% with textiles and clothing growing at 5% leather products mainly shoes growing at 9% while the informal activity in this industry grew by 37%

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