Rwanda’s Gross Domestic Product (GDP) rose to seven per cent in 2014 from 4.6 per cent registered in 2013. This is thanks to robust expansion in services, farming and industrial sectors.
In 2014, GDP at current market prices rose to Rwf 5,389 billion, up from Rwf 4,864 billion in 2013.
GDP is the monetary value of all the finished goods and services produced within a country’s borders. It is calculated on both quarterly and annual basis.
The services sector was at the vanguard of the economic rebound as it contributed 47 per cent of GDP. Agriculture and industry contributed 33 per cent and 14 per cent respectively, while the remaining five per cent was attributed to adjustment for taxes and subsidies on products.
Figures released by the National Institute of Statistics of Rwanda (NISR) show that in 2014, the agriculture sector grew by five per cent, the industry sector by six per cent, while the services sector registered nine per cent growth.
Presenting the statistics, the Director General of NISR Yusuf Murangwa said that “the analysis of figures indicate that the service sector was the biggest contributor expanding by nine per cent which contributed 4.3 percentage points to GDP. The agriculture sector which grew by five per cent contributed 1.6 per cent while Industries which expanded by six per cent contributed 0.9 per cent.”
The Minister of Finance and Economic Planning Claver Gatete noted that the seven per cent growth recorded in 2014 shows that Rwanda’s economy is back on track. “We are happy with seven per cent growth. This indicates progress considering that we only managed 4.6 per cent GDP growth in 2013.”
Minister Gatete further added that after scrutinising the figures released by NISR, the Ministry of Finance will make projections – for both growth and inflation – in collaboration with its key partners such as the International Monetary Fund.