Rwanda economy expands 10.6% in Q1 2018

Rwanda’s economy has witnessed a remarkable growth of 10.6% in the first quarter of 2018, with the GDP at current market prices estimated at 1,985 billion Rwandan Francs, a significant increase from the previous year's 1,816 billion Rwandan Francs. Yussuf Murangwa, Director General of the National Institute of Statistics of Rwanda, shed light on the key drivers behind this impressive growth in a recent interview with CNBC Africa. The Director General attributed this remarkable growth to various factors, with agriculture registering an 8% growth, industry 7%, and services 12%. Murangwa highlighted the exceptional performance of the agriculture sector, mentioning a very good season that spanned from October of the previous year to February of the current year. Additionally, he pointed out a rebound in construction and a notable growth in wholesale and retail trade. The transport sector also contributed significantly to the overall growth, with a remarkable 26-28% growth in transport and a staggering 32% growth in air transport. As the discussion delved into the challenges the agriculture sector might face heading into the dry season, Murangwa acknowledged the sector's vulnerability during this period and expressed cautious optimism. He emphasized the importance of closely monitoring the situation and adapting strategies accordingly, as forecasting in economics can be challenging due to various unforeseen factors. When pressed to explain the significance of the 10.6% growth rate in layman's terms, Murangwa highlighted the positive impacts on the common person. He emphasized that the growth has led to reductions in food crop prices, an improvement in the production of export crops such as coffee and tea, and a significant increase in income for individuals engaged in these sectors. These direct impacts on everyday life are what make the growth rate meaningful to the general population. The interview also explored the role of the transport sector in driving the growth of the services industry. Murangwa explained that improvements in manufacturing and agriculture directly influenced the transport sector, as increased production necessitates transportation. Moreover, he pointed out the expansion of air transport destinations, leading to a higher number of passengers and longer routes, ultimately boosting the growth of the sector. Looking ahead, while the unprecedented 10.6% growth signifies a robust economy, Murangwa advised a cautious approach to forecasting, emphasizing the need to wait and observe the actual outcomes. The detailed insights provided by the Director General offer valuable information not only to economists and policymakers but also to the general population, enabling a clearer understanding of the burgeoning economy and its impacts on daily life.