Rwanda’s GDP Slips Markedly

Rwanda-economy

VENTURES AFRICA – Rwanda’s gross domestic product (GDP) growth slipped to 7.3 percent from 11.9 percent in the third quarter of this year, the statistics office said on Wednesday.

In addition, the International Monetary Fund (IMF) said the country’s GDP growth for next year was forecast to be 7.5 percent.

The stagnant nature of the GDP growth will be on the back of changes in donor government attitudes due to the global economic downturn.

Rwanda’s narrow export base of coffee, tea and minerals and the heavy dependence on foreign aid leave the country excessively vulnerable to both global downturns and changes in donor government attitudes.

The country may be forced to delay some key projects following the suspension of key aid disbursements to the government by its key donors.

As of September this year, at least $108 million in budgetary aid was still being withheld by donors including the African Development Bank (AfDB), which delayed the largest single share of $39 million.

Growth in the industrial sector, which accounts for 16 percent of the GDP, slowed to 7 percent compared with 22 percent in the third quarter of last year.

Overall, the services sector, which makes up 44 percent of the GDP, grew by 12 percent in the third quarter, while the agriculture sector grew by 2 percent.