Rwanda’s economy has recorded an impressive growth of 7.4% in the first quarter of 2014 compared to 4.7% growth during the same period last year.
Presenting a statement on monetary policy and financial stability, at Serena Hotel Wednesday, the governor of National Bank of Rwanda, John Rwangombwa the GDP growth of the economy in the first quarter of 2014 had exceeded the target of 6%.
Rwangombwa noted that the recovery of the economy was much supported by increased financing to private sector.
The existing financial institutions have in the past months established branches across the country thus increasing access to finance. Umurenge SACCOs,mobile financial services, banking agents and more microfinance instutitions have been instrumental in widening access to finance.
On external trade performance, Rwanda’s trading with the East African region grew by 38.6% reaching $97.8M in the first half of 2014 compared to $70.7Million recorded in the first half of 2013.
Generally the total imports into the country increased by 13.0% while exports increased by 1.2% in value. This in effect widened the trade deficit by 17.4%.
The countrys formal exports were dominated by non-traditional exports and re-exports with a share of 50.8% in total exports compared to 49.2% for traditional exports.
Imports in the first half of 2014 recorded an increase of 13% and 0.9% in volume compared to the first half of 2013.
Mr Rwangombwa expressed confidence that the country’s good economic performance sent a signal that in the near future more bonds would be issued due to an increased confidence in the country’s economic stability.
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