Rwanda’s GDP grows by 6.3% in second quarter of 2023

During the second quarter, the service sector contributed 45% of GDP, agriculture contributed 27%, industry contributed 20%, while net direct taxes accounted for 7%. The agriculture sector did not exhibit any growth when compared to the second quarter of 2022. Within agriculture, export crops increased by 2%, buoyed by a 14% increase in tea production, although coffee production decreased by 11%. The production of food crops decreased by 3% due to a lower harvest in Season A of 2023 compared to Season A of 2022.

The industry sector grew by 6%, contributing 1.1 percentage points to the overall GDP growth. Within the industry, mining and quarrying activities increased by 7%, manufacturing activities grew by 8%, while construction activities increased by 4%.

The growth in manufacturing is primarily attributed to a 9% increase in food processing, a 6% increase in the manufacturing of metal products, machinery, and equipment, a 14% increase in the manufacturing of chemicals, rubber, and plastic products, a 32% increase in the manufacturing of wood and paper printing, and a 9% increase in the manufacturing of non-metallic minerals. However, manufacturing of beverages decreased by 2%.

The service sector increased by 10%, contributing 4.8 percentage points to overall GDP growth. Within services, wholesale and retail trade increased by 6%, while transport services increased by 8%.

Among other services, hotel and restaurant services increased by 7%, information and communication services increased by 37%, financial services increased by 5%, professional, scientific, and technical activities increased by 1%, real estate activities increased by 2%, while education services increased by 28%, public administration increased by 21%, and health services increased by 7%.

In the second quarter of 2023, total final consumption expenditure increased by 3%, with household final consumption decreasing by 4%, while government final consumption increased by 31%. Exports of goods and services increased by 23%, while imports of goods and services decreased by 4%. Gross Capital Formation decreased by 9%.