Data from Statistics body shows return to pre-covid economic growth

The market value of all the final goods and services produced between July and September this year grew by 10.1 per cent compared to 3.6 per cent in the same period in 2020, according to the National Institute of Statistics of Rwanda. The agency noted that most economic activities have recovered to pre-Covid levels except a few such as hotel and restaurants, administrative and support activities. In the third quarter, the Agriculture sector grew by 6 per cent driven by positive performance of food crops in the two seasons of the year, production of export crops due to increased output of tea and coffee. Industry grew by 12 per cent buoyed by increased construction activities and manufacturing activities as well as production of processed foods and manufacturing non-metallic products. Mining and quarrying also grew in the quarter. In manufacturing, officials say that there was increased performance in production of food, beverages, textiles, clothing, and cement among others. Uzziel Ndagijimana, the Minister of Finance and Economic Planning noted that the manufacturing sector had seen increased output, an increase in players as well as was making the most off interventions such as Manufacture and Build to recover programme. The services sector grew by 11 per cent driven by transport services (public transport, cargo logistics and Air travel), hotels and restaurants which grew by 62 per cent and education activities which grew by 140 per cent as most schools were partially closed in the same period last year. Financial services grew by 11 per cent while Information telecommunications services grew by 14 per cent. Public transport sector had last year contracted due to measures set up to curb the spread of covid-19 which reduced the number of passengers and consequently their returns. The sector also suffered due to significant loans in the sector. The government made interventions such as subsidization of fuel. The Minister said that the interventions had allowed the sector to remain afloat and would remain to facilitate further recovery. The hotel and hospitality sector, whose loans had been restructured as part of the economic recovery fund, is still yet to recover to pre-covid-19 levels but has resumed a majority of operations. Ndagijimana noted that the economic recovery of the sector building on the Economic Recovery Fund will see the hospitality sector soon see the sector resume loans repayment. With regards to the concerns of the new Covid-19 variant, the minister said that unlike early last year, governments and stakeholders are better prepared, more knowledgeable and health sectors better equipped which serve to mitigate the risk on the economy.

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Data from Statistics body shows return to pre-covid economic growth