Rwanda recorded 6.3% GDP growth in the second quarter of 2023 following 9.2% growth in the first quarter, according to figures released by the National Institute of Statistics Rwanda (NISR) on Monday, September 18.
The growth of GDP at current market prices - to Rwf3,970 billion - is measured against that of the same period in 2022 which stood at Rwf3,282 billion. The growth was buoyed by the service sector which contributed 45 percent, agriculture 27 percent, industry 20 percent, while net direct taxes accounted for 7 percent.
#Rwanda recorded 6.3% GDP growth in the second quarter of 2023 following 9.2% growth in the first quarter, according to figures released by @statisticsRW earlier today. https://t.co/ETFXJmGwlj pic.twitter.com/A6Gv29MbfQ-- Ministry of Finance & Economic Planning (@RwandaFinance) September 18, 2023
Within services, wholesale and retail trade increased by 6 percent while transport services increased by 8 percent mainly due to a 23 percent increase in air transport.
"We saw telecommunication services increase by 37 percent and this was the highest sector growth we observed during this quarter," said Yusuf Murangwa, the Director General of NISR.
ALSO READ: Rwanda's economy grows by 9.2% despite drop in food crop production
Exports of goods and services increased by 23 percent while imports of goods and services decreased by 4 percent.
Food production persistently decline
According to the statistics body, the agriculture sector did not record any growth compared to the same period in 2022.
While export crops increased by two percent, boosted by a 14 percent increase in tea production despite the 11 percent decrease in coffee production, food crops production decreased by three percent due to a poor harvest of season A of 2023 compared to season A of 2022.
"The main reason for food prices increase is due to climate change with rains not being predictable and this does not help the farms in terms of proper season planning which affects the yield and prices on the market," explained Richard Tushabe, the Minister of State in charge of the National Treasury.
In Q2 2023, Rwanda's GDP growth was 6.3% @yusuf_murangwa @ivanmurenzi @RwandaFinance pic.twitter.com/RDHzcC7d7T-- National Institute of Statistics of Rwanda (@statisticsRW) September 18, 2023
He added that the government has been consistent in fixing the prices of household staple food and availing inputs like seeds and fertilizers to boost production.
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Industry sector performance
Figures indicate that the industry sector grew by six percent with mining and quarrying activities increasing by 7 percent, manufacturing by 8 percent, and construction by 4 percent.
The country's investment in boosting food processing resulted in a 9 percent increase which contributed to the growth in manufacturing. The manufacturing of metal products, machinery, and equipment increased by 6 percent, chemicals rubber, and plastic products increased by 14 percent, wood and paper printing increased by 32 percent and non-metallic minerals manufacturing increased by 9 percent.
However, the manufacturing of beverages decreased by two percent.
NISR took note of the total final consumption expenditure which increased by 3 percent, with household final consumption decreasing by 4 percent while government final consumption improved by 31 percent.
