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Rwanda’s GDP Dropped By 12.4% Year-on-year in Q2 of 2020

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Rwanda’s general economic performance in the second quarter has not been a good one according to statistics revealed by Finance Minister Uzziel Ndagijimana, Taarifa reports.

On Monday, while updating the parliament on the economic status of the country, Minister Ndagijimana said; “Rwanda’s GDP dropped by 12.4% year-on-year in Q2 of 2020.”

The Minister attributed this decline in GDP of Q2 to poor performance in transport, trade, education, construction, exports, hotels and restaurants, and agriculture subsectors.

Meanwhile, on the status of debts, the Minister said that the risk status of debt has shifted from low to moderate, as a result of lower projected macroeconomic performance, “External Debt stock remains essentially concessional.”

He also told the august house that the new authorized loans to the economy by commercial banks decreased by 8.2 % in January – September 2020 compared to the same period in 2019. “The decrease was driven by manufacturing & mining activities due to impact of the pandemic,” Minister Ndagijimana said.

The legislators were also informed that Rwanda formal trade deficit widened by 7.0 % in January-September 2020 compared to the same period last year. The Minister revealed that almost all export categories showed a decline resulting in a 21.4 % and 15.1% decrease in value and volume respectively of export.

Meanwhile, for imports, the Minister noted that they have decreased by 4.5 % in value while volume has increased by 3.7 %, the decrease in value was from a decrease in import of Capital Goods and Energy and Lubricants by 7.7 % and 29.4 % respectively. He also said that other categories of imports have increased.

Law makers were also updated that at the end of September 2020, provisional data showed that the Government had spent a total amount of Rwf885.9 billion, which was only Rwf1.6 billion lower than the estimated amount of Rwf887.6 billion (0.2%).

He said that at the end of September 2020, the total disbursements amounted to Rwf404.4 billion and registered a small shortfall of Rwf1.6 billion (0.4%).

Regarding Budget Execution, the Minister noted that total domestic revenue collections for the July-Sept period amounted to Rwf465.5 billion and exceeded estimated amount for the period by Rwf52.5 billion (12.7%).

Rwanda’s Finance Minister Updates Parliament On Status Of Economy

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