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Rwanda’s economy grew 20% in the second quarter of 2021
The Rwandan economy grew faster than initially thought in the second quarter of 2021. The economy grew by 20.6 per cent in the second quarter from a contraction of 12.4 er cent in the same period last year. The Deputy Director General at the National institute of Statistics of Rwanda, Ivan Murenzi spoke to CNBC Africa’s Julius Bizimungu for more.
Mon, 20 Sep 2021 10:27:08 GMT
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AI Generated Summary
- Rwanda's economy grew by 20.6% in the second quarter of 2021, a significant improvement from a 12.4% contraction in the same period last year.
- The industrial sector experienced a remarkable 30% rebound, demonstrating a resurgence in economic activities as COVID-19 restrictions eased.
- While sectors like agriculture remained stable, industries such as hotels and transport are still struggling to recover to pre-pandemic levels due to continued challenges in the tourism sector.
Rwanda's economy has exceeded expectations by registering a remarkable growth of 20.6% in the second quarter of 2021, bouncing back from a 12.4% contraction in the same period last year. This surge in growth has been attributed to several factors, as highlighted by Ivan Murenzi, the Deputy Director General at the National Institute of Statistics of Rwanda, in an exclusive interview with CNBC Africa's Julius Bizimungu. The impressive GDP growth in quarter two of 2021 can be linked to a combination of coming from a low base in quarter two of 2020 and also a gradual recovery of the economy since quarter four of last year.
Murenzi emphasized that the comparison from a significantly low base in 2020, which saw a recession of 12.4%, magnified the growth rate to 20.6% in the following year. The easing of COVID-19 restrictions from quarter four of 2020 played a crucial role in restoring economic activities to near-normal levels, albeit some sectors still operating below their pre-pandemic capacities. Notably, the industrial sector witnessed a significant rebound, with a staggering 30% growth compared to a 1.9% decline in the previous year, indicating the resurgence of economic activities.
The robust performance of sectors like agriculture, industry, and services has been pivotal in driving Rwanda's economic recovery. While agriculture remained relatively stable throughout the pandemic due to minimal disruptions in farming activities, the industrial and service sectors experienced more significant growth as restrictions eased and economic activities picked up pace. Initiatives by the government to support sectors like industry, particularly through investments in construction, production of metals, and food processing, have also contributed to the positive output witnessed in these areas.
However, some sectors such as hotels, restaurants, and transport are still struggling to return to their pre-pandemic levels, with challenges persisting in the tourism industry. Hotels heavily reliant on tourism and conferences are yet to see a substantial recovery in visitor numbers. The performance of these sectors moving forward will heavily depend on the global health conditions, ease of travel restrictions, and the resurgence of international visitors to Rwanda for various purposes.
Looking ahead, Murenzi expressed optimism that with the continued vaccination efforts and the maintenance of favorable conditions, Rwanda's economy is poised to sustain its growth trajectory. While challenges persist in certain sectors, the overall outlook remains positive, with hopes of further recovery as the country navigates through the ongoing pandemic.
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