Economy up 7.6 per cent

Rwanda’s economy grew by 7.6 per cent in the first quarter of 2015, up from 7 per cent in the same quarter of 2014, a new report by the National Institute of Statistics of Rwanda (NSIR) indicates. According to the report, released yesterday, Gross Domestic Product (GPD) at current market prices increased by Rwf1.377 trillion, up from Rwf1.282 trillion in the same quarter of 2014. The services sector was the largest contributor with 48 per cent of GDP while the agriculture sector contributed 31 per cent, according to the report. The industry sector contributed 15 per cent of GDP with 5 per cent coming from adjustments in taxes on products. The agriculture sector grew by 4 per cent, contributing 1.3 per cent. In real terms, the country’s service sector increased by 8 per cent, contributing 4.1 percentage points to GDP growth. According to NISR, private final consumption expenditure was 75 per cent of the GDP more than what government spent as final consumption (15 per cent). This puts the country’s gross fixed capital formation (the net amount of fixed capital accumulation) at about 27 per cent of GDP. Meanwhile, government is planning to spend on the economy about Rwf1.768 trillion during the Financial Year 2015/16, representing Rwf5.8 billion increase compared to what was spent this closing financial year. And, according to Claver Gatete, the minister for finance and economic planning, such expenditure will help in the realisation the second Economic Development and Poverty Reduction Strategy objectives, including setting Rwanda on a path toward achieving an annual economic growth of 11.5 per cent by 2020. Both government and International Monetary Fund have jointly forecast a 6.5 per cent economic growth for Rwanda in 2015. editorial@newtimes.co.rw

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Economy up 7.6 per cent