GDP growth slows in third quarter of last year

Rwanda’s gross domestic product slowed marginally during the third quarter of 2013 compared to the same period in 2012, statistics released by the National Institute of Statistics Rwanda (NISR) on Tuesday indicate. NISR figures show that GDP grew by 3.9 per cent in quarter three of 2013 compared to 6.7 per cent the same period in 2012. This was the lowest level of growth recorded in four years. The country has not posted a year-on-year quarterly growth figure this low since the third quarter of 2009, when the economy expanded 3.5 per cent. Experts attributed the slow growth to tightening of fiscal policy during the first half of the year and the eurozone crisis. However, GDP growth in real terms was up at Rwf1,244b compared to Rwf1,143b in 2012. The major drivers of growth during the period were services, agriculture and industry. The services sector contributed 43 per cent of GDP, but expanded marginally at 5 per cent compared to 12 per cent during the same period in 2012. The agriculture sector contributed 33 per cent, while industry added 16 per cent, but both sectors recording declining growth. Agriculture grew by 1 per cent compared to 2 per cent in 2012, industry by was up 8 per cent, while the service sector increased by 5 per cent, a reduction from 11 per cent in same period in 2012. Exports were up by 10 per cent compared to 31 per cent in the third quarter of 2012, but import receipt dropped by 5 per cent. The economy grew by 5.9 per cent and 5.7 per cent in the first and second quarters, respectively, before increasing by 6 per cent in the third quarter of 2013. This sluggish growth compares poorly with 7.7 per cent growth rate in 2012. The government and International Monetary Fund (IMF) projected growth rate of 6.6 per cent in 2013, that would then expand by 7.5 per cent in 2014.

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GDP growth slows in third quarter of last year