The International Monetary Fund expects trade and private investment to boost Rwanda’s GDP by 8%. This year’s estimate is slightly lower than last year’s, given factors like unpredictable weather, which threaten the agricultural output. In a separate report, the World Bank states that weakening demand and lower commodity prices account for slower economic growth.
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In the past, Rwanda has recorded impressive economic growth. Improved performance in construction, manufacturing, and its service industry saw Rwanda’s GDP grow by 11.9% in 2018 Q3. The government and IMF estimated its 2019 growth at 8.5%. Moreover, Reuters notes that the country recorded double-digit growth of 12.2% in 2019 Q2.
According to Rwandan Economist Canisius Bihira, this years’ growth depends on how much the government will support agriculture.
“The government needs to support agriculture, particularly crop production and agricultural export services for the country to realize the growth,” New Times quoted Bihira.
Furthermore, the World Bank stipulates that the economic growth will emanate from public sector investment. This will be in addition to reforms in the business environment boosting private sector growth.
Rwanda is the only country with GDP growth projections higher than 8 percent.
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