GDP grew by 5.9% in 2016, services account for nearly half of it

Yusuf Murangwa, the director general of the National Institute of Statistics of Rwanda (NISR), and Finance Minister Claver Gatete present the 2016 GDP figures. (photo Minecofin)

In the year 2016, Rwanda’s GDP at current market prices grew by 5.9%, to an estimated Frw 6,618 billion from Frw 5,956 billion in the previous year, the National Institute of Statistics of Rwanda (NISR) announced on Wednesday.

The service sector remained the biggest at 48% of the GDP in 2016, followed by agriculture at 30% and industry at 17%.

The agriculture sector grew by 4%, and industry and services both by 7%.

In agriculture, growth was boosted by an increased harvest in season A of 5%. However, in season B and C harvest growth was low at 1% due to drought and floods in some parts of the country.

1489658442GDP graph

The service sector, which grew by 7%, accounts for 48% of the economic activity.

In the industrial sector, manufacturing activities increased by 7%. Emerging industries related to the promotion of Made in Rwanda products – for example manufacturing, textiles, leather & clothing – got a boost of 10% while food processing expanded by 8%. Production of construction material such as cement gained 21%.

The construction sector continued to grow by 5% following a very high growth rate of 15% in 2015. The slowdown is due to the finalization of some large construction projects early in 2016.

In the service sector, hotels & restaurant grew by 11% reflecting the recent expansion of conference tourism. Transport activities increased by 8%, boosted by a 15% increase in air transport.

Improvement data and analysis

These estimates are based on the new 2014 Supply and Use Table (SUT). This has been used to update the benchmark levels of economic activity, which form the basis of the estimated growth in GDP. The level of GDP in 2014 based on the previous SUT (2011) was 5,395 RWF billions.  This compares with the level from the 2014 SUT of 5,466 RWF billions, an upwards revision of 1.3%. 

The series of annual and quarterly estimates of GDP (and corresponding growth rates) differ from those previously published for the years 2013, 2014 and 2015. There are two main reasons for the revisions: the introduction of new or improved data sources and analysis methods; and the effects of the new benchmark in terms of the changes in shares of total GDP between 2011 and 2014.

The revised series show that the service sector contributed 48% to the GDP in 2016, the share of agriculture was revised to 30% based on the new SUT (from 33% on the previous basis), and the industrial sector increased from 14% to 17% of the GDP.

For more details, visit the NISR website.

  • By Hope Magazine
  • Posted 16th March 2017

Comments

There are no comments for this article.

×
5  +  9 =