Rwanda’s GDP grows by 11.9% in the 3rd quarter of 2019

Rwanda's GDP went up by close to 12% in the 3rd Quarter of 2019, compared to the same period in 2018.

The growth comes despite complaints of high food prices, which the National Institute of Statistics of Rwanda says it is going to investigate.

The figures announced on Thursday, show that the service sector remained dominant accounting for 49%, and Agricultural Sector that usually accounts for 30%, now accounts for 27%.

Other Figures from the Quarter were encouraging, however, even for agriculture, according to Yusuf Murangwa, Director General of the National Institute of Statistics (NISR).  

"The economy grew by 11.9% during the 3rd quarter of this year, agriculture increased by 8%, Industry by 14%, the service sector by 13%. The Service Sector has continued to dominate our economy, accounting for close to 49%, agriculture 27% and the industrial sector 17%," Murangwa said while presenting the report to journalists in Kigali.

Retail Trade went up by 25%, the Hospitality Sector up by 15% and transportation also up by 18%.

Economic experts say the figures are without doubt showing a strong shift occurring. But some expressed concerns over increasing food prices.

Straton Habyarimana, and an economic expert said; "Close to 70% of Rwandans say they are engaged in Agriculture, but Sector's contribution to the country's economy is very small. That is why the Government is encouraging people to engage in other activities, not necessarily agriculture. Therefore when you see the Service Sector growing to dominate like that, so much more than agriculture, it is encouraging and should push for even more growth because when services increase, so does employment and people can stop calling themselves farmers when they are really not. That problem can be progressively addressed."

On her part, Dr. Geraldine Mukeshimana, Minister of Agriculture and Animal Resources said; "I believe you know that we are close to the harvest season and at times like this, during these months, prices tend to go up. But we also had very heavy rainfall that destroyed many beans while they were still in the ground, and even though we have not stressed it a lot, this year was not very good when it comes to agriculture."

NISR Director-General Murangwa also expects food prices to go down in December.

"During this season, food stocks tend to go down, because the last harvest was in July. In December prices go down because supply has reduced, but we expect that with good harvests towards the end of December and the beginning of January, prices will go down. We are monitoring it closely, with continued rainfall, if there are no more problems, prices will reduce and if a problem does arise, we will let you know and the concerned authorities will see what they can do," Murangwa explained.

Food Crop Harvests increased by 5% during the 2019 B & C Agricultural Season, while Cash crops went up by as much as 22%, largely because Tea Harvests increased by 29% and Coffee increasing by 22%.

The Mining Sector, however, did not fare so well, falling by as much as 16%.