EconomyNewsPolitics

Rwanda’s economy grows by 7.8% in first quarter of 2025

In the first three months of 2025, Rwanda’s economy recorded significant growth, expanding by 7.8% to reach RWF 5,255 billion, compared to RWF 4,486 billion in the same period of 2024, according to data from the National Institute of Statistics of Rwanda (NISR).

This growth was largely driven by the services sector, which contributed 46% to the country’s Gross Domestic Product (GDP). Agriculture accounted for 24%, industry 23%, while the remaining sectors contributed 7%.

Ivan Murenzi, Director General of NISR, said the figures reflect a promising economic trajectory. He explained that GDP growth stems from various activities across the country in sectors such as construction, trade, agriculture, and manufacturing, all of which create jobs and generate income.

“When new activities emerge, they create employment, and people earn money. When agriculture improves, it means more food is available, jobs are created, and surplus production can be exported to bring in foreign currency,” Murenzi said.

He added that GDP gives a broad picture of the nation’s economic health and that an annual growth rate of over 6% signals increased national wealth and improved livelihoods for citizens.

Despite overall growth, some areas experienced a decline. Household food crop production dropped by 1%, mainly due to changing weather patterns during the 2025A farming season. Maize production fell by 5%, beans by 1%, while potatoes increased by 3%, and cassava by 5%. Export crops grew by 3%.

Minister of Finance and Economic Planning, Dr. Yussuf Murangwa, said the late onset of rains affected many farmers, with some having to replant crops such as maize and beans. He stressed the need to invest more in climate resilience and agricultural advisory services.

“The season started with delayed rainfall, leading to poor yields. Some farmers planted twice, and others faced crop failure. We must continue and increase our support to help farmers cope with these climate shocks,” he said.

The Rwandan economy is projected to grow by 7.1% in 2025, signaling continued progress toward sustainable development.

The services sector played a major role in driving this economic growth.

Rwanda’s economy grew by 7.8% in the first quarter of 2025, reinforcing the country’s path toward sustainable growth.

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