Rwanda’s economic growth has been slowing down since mid-2016, resulting in a 6-percent growth in 2016 and a 4.2-percent annualized growth in the first quarter of 2017; but growth is expected to pick up in the second half of this year, a World Bank report said on September 6. The 10th edition of the World Bank Rwanda Economic Update, recently launched in Rwanda’s capital city Kigali, attributed the slowdown mainly to a combination of drought, weak export prices and construction activities following the completion of large investment projects in 2016.
The report also said improvement has also been made to macroeconomic policy in 2017 with inflation decelerating to below 5 percent by June 2017, down from the peak of more than 8 percent recorded in February. On export sector performance, the report noted that exports increased from just $400 million in 2007 to $1.6 billion in 2016. Non-traditional exports emerged as an important driver of that growth, laying the foundations for exportled growth in Rwanda. The report called for maintaining a competitive real exchange rate by avoiding exchange rate misalignment, focusing on agriculture as a strategic sector that provides raw materials for emerging agribusiness.