Ambassador Claver Gatete the Governor of Central Bank of Rwanda last Friday disclosed that Rwanda’s Gross Domestic product is expected to rise above 8.6% compared to 7.2% of the previous year.
The central bank governor noted that the economy is expected to grow faster in 2012 compared to 2011 subject to reforms in key agricultural and industrial sectors. These adjustments propelled the Economy’s expansion in 2011.
Amb. Gatete said, “We are more likely to exceed 8.6% growth of our GDP. We are seeing reforms on the industry side, in addition to the key reforms in the agricultural sector. The signs are good, by any means.”
Rwanda was least shaken by inflation than Kenya, Uganda and Tanzania where double digit inflation and weak currencies prompted authorities to increase interest rates to around 20 % in some cases.
Inflation in Rwanda was steady at close to 8%, the lowest in the region, helped in part by the reduction in fuel taxes and good harvest.
“Last year, our initial target was 7%, but by the end of the year, it was 8.6%. So this year we also hope it is going to be much better. And, even what we see in the first quarter then we are almost more optimistic.”
Amb. Gatete indicated that the economic growth figures for the first quarter would be released at the beginning of August.
In March, the International Monetary Fund (IMF) said Rwanda’s economy could expand by 7.5 to 8% in the next two years. The IMF however, warned of the risks of a revenue shortfall.
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