Rwanda: Economy#
Rwanda is a rural country with about 90% of the population engaged in subsistence agriculture and some mineral and agro-processing. Tourism, minerals, coffee and tea are Rwanda's main sources of foreign exchange. Despite Rwanda's fertile ecosystem, food production often does not keep pace with demand, requiring food imports. Energy shortages, instability in neighboring states, and lack of adequate transportation linkages to other countries continue to handicap private sector growth.The 1994 genocide decimated Rwanda's fragile economic base, severely impoverished the population, particularly women, and temporarily stalled the country's ability to attract private and external investment. However, Rwanda has made substantial progress in stabilizing and rehabilitating its economy to pre-1994 levels. GDP has rebounded with an average annual growth of 7%-8% since 2003 and inflation has been reduced to single digits. Nonetheless, in 2015, 39% of the population lived below the poverty line, according to government statistics, compared to 57% in 2006.
Africa's most densely populated country is trying to overcome the limitations of its small, landlocked economy by leveraging regional trade; Rwanda joined the East African Community and is aligning its budget, trade, and immigration policies with its regional partners. The government has embraced an expansionary fiscal policy to reduce poverty by improving education, infrastructure, and foreign and domestic investment, and pursuing market-oriented reforms. In recognition of Rwanda's successful management of its macro economy, in 2010, the IMF graduated Rwanda to a Policy Support Instrument.
The Rwandan Government is seeking to become a regional leader in information and communication technologies. In 2012, Rwanda completed the first modern Special Economic Zone (SEZ) in Kigali. The SEZ seeks to attract investment in all sectors, but specifically in agribusiness, information and communications, trade and logistics, mining, and construction.
Economic Facts#
| GDP (purchasing power parity) | $21.97 billion (2016 est.) $20.73 billion (2015 est.) $19.39 billion (2014 est.) note: data are in 2016 dollars |
|---|---|
| GDP (official exchange rate) | $8.341 billion (2015 est.) |
| GDP - real growth rate | 6% (2016 est.) 6.9% (2015 est.) 7% (2014 est.) |
| GDP - per capita (PPP) | $1,900 (2016 est.) $1,800 (2015 est.) $1,800 (2014 est.) note: data are in 2016 dollars |
| Gross national saving | 12.9% of GDP (2016 est.) 12.8% of GDP (2015 est.) 15.6% of GDP (2014 est.) |
| GDP - composition, by end use | household consumption: 77.8% government consumption: 11.4% investment in fixed capital: 26.4% investment in inventories: 0.6% exports of goods and services: 13.6% imports of goods and services: -29.8% (2016 est.) |
| GDP - composition, by sector of origin | agriculture: 34.6% industry: 15.1% services: 50.3% (2016 est.) |
| Agriculture - products | coffee, tea, pyrethrum (insecticide made from chrysanthemums), bananas, beans, sorghum, potatoes; livestock |
| Industries | cement, agricultural products, small-scale beverages, soap, furniture, shoes, plastic goods, textiles, cigarettes |
| Industrial production growth rate | 6.9% (2016 est.) |
| Labor force | 6.03 million (2016 est.) |
| Labor force - by occupation | agriculture: 90% industry and services: 10% (2000) |
| Unemployment rate | NA% |
| Population below poverty line | 39.1% (2015 est.) |
| Household income or consumption by percentage share | lowest 10%: 2.1% highest 10%: 43.2% (2011 est.) |
| Distribution of family income - Gini index | 46.8 (2000) 28.9 (1985) |
| Budget | revenues: $1.865 billion expenditures: $2.279 billion (2016 est.) |
| Taxes and other revenues | 22.4% of GDP (2016 est.) |
| Budget surplus (+) or deficit (-) | -5% of GDP (2016 est.) |
| Public debt | 36.6% of GDP (2016 est.) 33.9% of GDP (2015 est.) |
| Fiscal year | calendar year |
| Inflation rate (consumer prices) | 4.6% (2016 est.) 2.5% (2015 est.) |
| Central bank discount rate | 7.75% (31 December 2010) 11.25% (31 December 2008) |
| Commercial bank prime lending rate | 17.3% (31 December 2016 est.) 17.33% (31 December 2015 est.) |
| Stock of narrow money | $957.3 million (31 December 2016 est.) $1.013 billion (31 December 2015 est.) |
| Stock of broad money | $1.817 billion (31 December 2016 est.) $1.64 billion (31 December 2015 est.) |
| Stock of domestic credit | $1.891 billion (31 December 2016 est.) $1.337 billion (31 December 2015 est.) |
| Market value of publicly traded shares | $NA |
| Current account balance | -$1.385 billion (2016 est.) -$1.096 billion (2015 est.) |
| Exports | $674.9 million (2016 est.) $683.7 million (2015 est.) |
| Exports - commodities | coffee, tea, hides, tin ore |
| Exports - partners | Democratic Republic of the Congo 19.8%, US 10.8%, China 10.3%, Swaziland 7.9%, Malaysia 7%, Pakistan 6.2%, Germany 5.9%, Thailand 5.5% (2015) |
| Imports | $1.961 billion (2016 est.) $1.917 billion (2015 est.) |
| Imports - commodities | foodstuffs, machinery and equipment, steel, petroleum products, cement and construction material |
| Imports - partners | Uganda 15.7%, Kenya 11.8%, India 8.7%, China 8.7%, UAE 8.6%, Russia 6.6%, Tanzania 5.1% (2015) |
| Reserves of foreign exchange and gold | $756.3 million (31 December 2016 est.) $1.03 billion (31 December 2015 est.) |
| Debt - external | $2.442 billion (31 December 2016 est.) $2.178 billion (31 December 2015 est.) |
| Stock of direct foreign investment - at home | $1.779 billion (31 December 2016 est.) $1.484 billion (31 December 2015 est.) |
| Stock of direct foreign investment - abroad | $25.6 million (31 December 2016 est.) $25.6 million (31 December 2015 est.) |
| Exchange rates | Rwandan francs (RWF) per US dollar - 787.9 (2016 est.) 720.54 (2015 est.) 720.54 (2014 est.) 680.95 (2013 est.) 616.6 (2012 est.) |