Rwanda’s economy grew by 7.8% in the first quarter of 2025, driven by strong performances in the services and industry sectors, while agriculture showed modest growth. This growth slightly surpassed the 9.3% target set in the National Strategy for Transformation (NST2), indicating a positive but slower-than-desired pace. The services sector remains the largest contributor to GDP at 46%, followed by industry at 23% and agriculture at 24%.
Key Drivers of Growth
- Services Sector: Saw a 9% growth, contributing the most to GDP.
- Industry Sector: Expanded by 9%, with significant growth in manufacturing and construction activities.
- Agriculture: Showed modest progress, contributing 24% of GDP but with slower growth compared to industry and services.
Overall Economic Performance
- GDP Growth:
A 7.8% expansion in the first quarter of 2025 followed an average growth rate of 8.4% between 2022 and 2024.
- Targets vs. Performance:
The 7.8% growth rate is considered good, but the government aims for higher growth to meet the ambitious targets of the NST2.
Sector-Specific Highlights
- Industry:
Includes construction (13% increase), manufacturing (7% increase), and mining and quarrying, which saw a 3% decrease.
- Manufacturing:
Driven by a strong increase in metal products, machinery, non-metal materials, chemicals, and food processing.
Looking Ahead The economy’s performance in Q1 2025 is a positive indicator, but the government emphasizes the need for continued effective implementation of the National Strategy for Transformation (NST2) to achieve its high-income country aspirations
