Rwanda’s Gross Domestic Product (GDP) has grown by 10.3% and the economy is expected to grow at 8.5%.
Uzziel Ndagijimana, Minister of Finance and Economic Planning on Tuesday appeared before legislators in the parliament to present an update on the country’s economic outlook.
Subject to Provisions of the constitution, Article 163 requires that every financial year, the chamber of deputies considers the relevance of the state finance bill and adopts the state finance law.
This is about determining the revenue and expenditure of the state in accordance with conditions provided by an organic law that also outlines or determines the date of presentation of annual budget before both Chambers of Parliament.
According to the Minister, by 2020 the global economy was projected to rise by 3.4% growth rate compared to 3.6% rate projection in April 2019. Economic growth of Sub-Saharan region was in April expected to rise at a rate of 3.5% but this has been revised to 3.2% growth rate.
He also told legislators that this particular part of Africa representing the world’s fastest growing economies is predicted to experience and economic growth rate of 3.6% in 2020.
Economic performance of the East African Community bloc is also projected to grow at 5.6% GDP compared to earlier predictions of 5.5%. Last year this region experienced a 4.5% GDP growth rate- the Minister says.
For Rwanda, the Minister says the Industrial sector contributed a total of 21% mostly due to high demand of manufactured products by the construction sector that also rose or grew by almost 32%.
Here, the Minister says both the private sector and public are involved in massive construction projects that place demand for construction materials such as cement, steel, plastics and roofing, nails and whole range of others.
Services grew by 12% while Agriculture sector pushed towards 5% growth. This means the Agriculture sector is not fully exploited but has enormous potential.
Details of this presentation in parliament indicate that production from foods and beverage industries has increased to 16%. Meanwhile, the mining sector production has also increased by 13% compared to previous figures.
A closer focus on the 12% growth of the services sector was mostly propelled by commerce, hotels and restaurants that grew by 13% while transport sector grew by 17% due to RwandAir expansion of its routes.