In 2024, Rwanda’s economy grew by 8.9% driven by the services, agriculture, and industry sectors, with GDP reaching Rwf18.785 billion. The agriculture sector expanded by 5%, helping to stabilize inflation around 6%. Minister of Finance Yusuf Murangwa projected a continued growth of 7% for 2025, despite regional challenges, highlighting the government’s commitment to economic stability.
Rwanda’s economy experienced a remarkable growth rate of 8.9% in 2024 compared to the previous year, largely attributed to robust performances in the services, agriculture, and industry sectors. This information was disclosed by the National Institute of Statistics of Rwanda (NISR) on March 19. Minister of Finance and Economic Planning, Yusuf Murangwa, noted that the quarterly GDP expansions were particularly strong, showing 9.7% in the first quarter, 9.8% in the second quarter, 8.1% in the third quarter, and 8% in the fourth quarter.
Rwanda’s GDP at current market prices reached an estimated Rwf18.785 billion, a significant increase from Rwf16.626 billion in 2023. The services sector led the economic contributions, comprising 48% of GDP, while agriculture and industry accounted for 25% and 21%, respectively. Murangwa emphasized the agriculture sector’s recovery, which experienced a 5% growth, whereas both industry and services saw increases of 10% each.
Positive growth in agriculture contributed to stabilizing inflation, which is currently at 6%, down from double-digit figures in 2023. Within the agricultural sector, food crop production rose by 5% due to favorable harvests in both agricultural seasons, with Season A production increasing by 8% and Season B by 2%. Conversely, export crop production actually saw a slight decline of 1%.
The NISR reported that private final consumption expenditure constituted 70% of the economy, with government expenditure at 17% and gross capital formation at 21%. Moving forward, Minister Murangwa expressed confidence in achieving a 7% growth projection for 2025, despite existing regional and geopolitical challenges. He assured the public that the government is prepared to take necessary measures to maintain economic stability.
Murangwa also stated that although there have been reductions in development aid from various partners, the overall impact on Rwanda’s economic progression remains limited. This resilience is primarily attributed to the implementation of the National Strategy for Transformation (NST2), highlighting the nation’s commitment to self-reliance and economic diversity.
Rwanda’s economy showcased substantial growth in 2024, with an overall increase of 8.9%, driven by key sectors such as services and agriculture. Positive trends in domestic agriculture played a crucial role in maintaining economic stability and controlling inflation. Looking ahead, the government remains confident in sustaining growth despite external challenges, emphasizing a strategic approach to economic self-reliance under the NST2 framework. Such optimistic projections indicate Rwanda’s proactive measures in navigating its economic landscape effectively.
Original Source: www.newtimes.co.rw
