Rwanda’s real GDP grows 9.7% in Q1-24 – World Bank

Rwanda’s real GDP grew by 9.7 per cent in the first quarter of 2024, surpassing the previous year’s growth rate of 8.2 per cent, a recent report by the World Bank showed on Tuesday.

The latest edition of Rwanda Economic Update (REU) emphasises the country’s resilience amid the global economic slowdown, fuelled by robust consumer spending in vital sectors like services and industry.

Despite challenges, Rwanda’s labour market witnessed a robust recovery, with over half a million new jobs created in the fourth quarter of 2023. This marked the most significant decrease in unemployment since the COVID pandemic.

The expansion of the labour market was broad-based, benefiting both women and men. However, Rwanda’s youth demographic presents a unique opportunity and challenge, the statement added.

To fully leverage this potential, the country needs to increase labour force participation, as only 2.8 million out of 8.1 million working-age individuals are currently employed full-time, said WB Senior Country Economist for Rwanda.

According to the 23rd edition of the REU, titled Accelerating Skills Development to Foster Private Sector Growth in Rwanda, inflation, which peaked at over 21 per cent in 2023, has since decelerated thanks to tighter monetary policies and lower food prices, reflecting improved supplies of fresh produce. By August 2024, Rwanda’s headline inflation slowed to 5.0 per cent year-on-year, bringing it within the central bank’s target range.

Attribution: World Bank’s Rwanda Economic Update (REU)

Subediting: Y.Yasser