Up­ris­ing Econ­omy

ChinAfrica - - News Roundup -

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.

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