Services sector leads as GDP grows by 7.3 percent in Q1, 2016

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The service sector topped other sectors to contribute 46 percent to GDP that grew by 7.3 percent in the first quarter of 2016 up from 7.0 percent in fourth quarter of 2015 but declined from 7.6 percent in the first quarter of 2015.

Statistics from national insititutte of statistics of Rwanda-NISR indicate that the agriculture sector contributed 33 percent while the industry sector contributed 15 percent of the GDP with 6 percent attributed to adjustment for taxes and subsidies on products.

“In the first quarter of 2016, GDP at current market prices was estimated to be rwf 1,536 billion, up from Frw 1,384 billion in the same quarter of 2015,” said Yusuf Murangwa, Director General of the statistics body.

On the sector growth, services sector continued to grow at 7 percent contributing 3.4 percentage points to GDP growth, agriculture and industry increased by 7 percent and 10 percent and contributing 2.1 percent and 1.5 percentage points to the GDP growth respectively.

The report released on Tuesday  indicate that the growth in  services sector  was driven  by Whole sale and retail  trade 11 percent growth compared to the same period in 2015 while in industry the growth was driven  by construction that  grew by 13 percent and manufacturing by 10 percent.

“For example in agriculture, the main  driver was export crops  mainly coffee  and tea that grew substantially at 86 percent  and food grew by  about 4 percent,” he said.

Murangwa however said that the information and communication  after a higher growth recorded  last  year of 35 percent while also  mineral sector also further declined by 5 percent due to low prices on  international market.

“Although the mining sector contributed negatively, we recorded an increase in agriculture exports  mainly  for  coffee and tea,” Amb Claver Gatete, Minister of Finance and economic planning  noted.
Also in quarter 1 of 2016, private final consumption expenditure grew by 76 percent of the GDP while government’s consumption expenditure stood at 11 percent of GDP.

 

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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