Rwanda registers 7.6% economic growth in the first quarter,2015

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Rwanda registers 7.5% economic growth  in the first quarter, 2015

Central bank Governor John Rwangombwa (C) reacts to questions from the audience as Vice Governor Dr Monique Nsanzabaganwa (L) and Central bank chief economist Thomas Kigabo.

The country’s economy recorded a positive outlook in the first quarter of 2015 with a real Growth Domestic Product-GDP growing by 7.6 percent up from 6.5 percent in the last quarter, 2014 above the projected 6.5 percent growth this year.

According to central Bank, growth was driven by the good performance of the service sector 8.0 percent followed by the industry sector 7.0percent and the agriculture sector 4.0 percent.

The bank notes the positive stance continued to be driven by expansion of credit flowing to private sector that increased by 15.1 percent with new authorized loans that increased by 10.8 percent in the first half of 2015.

Rwanda registers 7.5% economic growth  in the first quarter, 2015

This resulted from an increase in new authorized loans going to the sector amounted to Rwf 360.8 billion up from 325.7 billion in the first half of 2014 thus increasing investments by the private sector.

Moreover, the growth was triggered by contained inflation at 1 .5 percent in first quarter 2015  compared to the same period in 2014 at 2.6 percent despite the volatility in the currency market that  pushed the dollar to Rwf 755 from Rwf 704  in February ,2015.

The good economic performance has been supported by Central Bank’s accommodative policy as inflation pressures were limited,” said John Rwangombwa, during the presentation of the monetary [policy and financial stability statement in Kigali.

Whilst, the outlook was also driven by good performance in the financial sector with banking sector recording an increase by 13.1 percent in its total assets, microfinance sector growing by 17.7 percent in the first quarter of 2015.

Again in the same period under review the trade deficit improved by 4.7 percent in the first quarter to $858.83 percent in the first quarter from $ 901.43 million.

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Olive Ndaka is the Junior Editor for RwandaEye. An investor and young entrepreneur, she is a quick learner and has contributed many articles for RwandaEye in Kinyarwanda.

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