GDP up by 6.2%

KIGALI - The National Institute of Statistics of Rwanda (NISR) yesterday released the 2009/10 fiscal year estimates of the second quarter where it is indicated that GDP is Rwf3,160 billion up from 2,843 billion in the year ending June 2009. Speaking at the NISR head offices, the acting Director General of NISR, Diane Ngendo Karusisi, said that the GDP estimates by the institute calculated at constant 2006 prices; show that in 2009/10 the GDP was 6.2 percent higher in real terms than it was in 2008/09. According to the estimates, in 2009/10 the agricultural sector contributed 33.7 percent of the overall GDP while 14.2 percent and 46.2 percent were generated respectively by the industrial and services industry. “The growth of the main three sectors in this fiscal year was 5.9 percent for agriculture (mainly driven by a 7 percent increase in the food crop production), 0.6 percent industry and 7.6 percent for services, which was pushed by public administration that grew by 10 percent, and business which grew by 13 percent,” explained Karusisi. She however said that the industry sector did very badly in this fiscal year with its growth estimated at 1 percent. “This is mainly due to less activity in the construction sector this year.” In this fiscal year, the population of Rwanda was estimated at 10.2 million people. GDP per head was therefore Rwf307, 941 or $541 at the nominal exchange rate of 569 per one US dollar. The expenditure on GDP at 2006 constant prices, in this fiscal year shows that government and private consumption grew by 7 percent and 12 percent respectively while Gross Capital Formation in real terms fell by 7 percent after two years of exceptional increases which was at 24 and 28 percent. Karusisi again attributed this to the slow down in the construction sector which was caused by the economic and banking crises. “These crises led to fewer loans given by banks to the construction sector hence decreasing construction activities in the country,” she said. The estimates also suggest the formal sector share of GDP (including taxes) in this fiscal year, slipped back to 22 percent while the monetary informal and non monetary share remained at 47 percent and 20 percent respectively. The slip back, according to Karusisi, was mainly due to the small number of companies that register for the VAT tax and due to the fact that the biggest part of the GDP is informal, meaning agriculture based. Ends