Rwanda’s economy doing well – Global Competitiveness Report

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Rwanda's economy doing well – Global Competitiveness Report

With the global economy expected to continue slowing down, despite years of bold monetary policy, as countries struggle to implement structural reforms necessary to help economies grow, the Global Competitiveness Report 2014-2015 released today by the World Economic Forum shows things are not getting better.

However, Rwanda’s economy continues to grow with new projections expecting the country to be one of the few to grow at a rate of 6.2 percent averaging more than 5 percent over the past two years a feet previously seen as unattainable due to slow down of the world economy.

Sub-Saharan Africa continues to register impressive growth rates close to 5%. Maintaining the momentum will require the region to move towards more productive activities and address the persistent competitiveness challenges.

Only three sub-Saharan economies, including Mauritius (39th), South Africa (56th) and Rwanda (62nd) score in the top half of the rankings.

Overall, the biggest challenges facing the region isin addressing human and physical infrastructure issues that continue to hamper capacity and affect its ability to enter higher value added markets.

“The strained global geopolitical situation, the rise of income inequality, and the potential tightening of the financial conditions could put the still tentative recovery at risk and call for structural reforms to ensure more sustainable and inclusive growth,” said Klaus Schwab, Founder and Executive Chairman of the World Economic Forum.

Xavier Sala-i-Martin, Professor of Economics at Columbia University in the US, added: “Recently we have seen an end to the decoupling between emerging economies and developed countries that characterized the years following the global downturn.

Now we see a new kind of decoupling, between high and low growth economies within both emerging and developed worlds. Here, the distinguishing feature for economies that are able to grow rapidly is their ability to attain competitiveness through structural reforms.”

 

About the author

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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1 Comments

  1. Nshimiyimana says:

    My comment will be short : I would like thank the Leadership of President Paul Kagame . You know without good governance and wisdom in managing the country this couldn’t and can not happen . Yes this is the work of all Rwandan too , because they have confidence peace and the tools needed for work : communication ; good roads ; good services in administration ; banks and free mvnt of capital and free circulation of devise ! Congrats and wish to continue to raise more and more and strengthening security and peace on what depend all stability of economy .

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