Rwanda flag Rwanda: Economic outline

Economic Outline

Economic Indicators

For the latest updates on the key economic responses from governments to address the economic impact of the COVID-19 pandemic, please consult the IMF's policy tracking platform Policy Responses to COVID-19.

Rwanda registered a good economic performance over the last years, and thanks to investments in education and infrastructure, it reached the Millennium development goals. In 2021, the economy started to show signs of recovery from the recession brought on by the COVID-19 pandemic, with GDP growing 5.1%, thanks to the service sector and the measures taken to fight back the coronavirus. Growth is expected to continue in 2022 and 2023, when GDP should grow by 7% and 8.1%, respectively.

In 2021, activity recovered strongly from the recession brought on by the pandemic. Inflation significantly reduced to 2.4%, but it is expected to increase to 4.9% in 2022 and 5.8% in 2023. The debt-to-GDP ratio increased to 74.8% in 2021, and it is expected to continue to rise in the coming years, reaching 78.2% in 2022 and 80.9% in 2023. However, the overall deficit should remain stable at 1.35% in 2022 and 1.34% in 2023, against 1.4% in 2021. With over 70% of the population employed in agriculture, household incomes are expected to continue to benefit from the favourable prices of export crops in 2022, which should result in higher household expenditure. In 2021, the government continued implementing a series of fiscal measures put in place to overcome the challenges related to the COVID-19 crisis, which have been effective. Furthermore, the public investment, through the national strategic transformation plan (NST), targeted infrastructures related to trade such as the construction of the airport of Bugesera, to help the restart of the economy. The NST focuses on economic, social and governance transformation, according to the aspirations of the plan Vision 2050. As part of the latter, the government is developing new medium-term development strategies aimed at turning the country in a country with intermediate high income status before 2035, while the “Made in Rwanda” program aims to promote local production in order to reduce imports.

Despite the progress made, Rwanda remains a very poor country, where around 40% of the population lives below the national poverty line. In 2021, the unemployment rate in the country was at 23.5%, according to the government's Labour Force Survey. Unemployment in Rwanda is much higher among women (26.7%) then men (19.9%).

 
Main Indicators 201920202021 (e)2022 (e)2023 (e)
GDP (billions USD) 10.36e10.33e10.4011.0411.94
GDP (Constant Prices, Annual % Change) 9.5e-3.4e5.17.08.1
GDP per Capita (USD) 835e816e802833881
General Government Gross Debt (in % of GDP) 50.260.1e74.878.280.9
Inflation Rate (%) 2.47.7e2.44.95.8
Current Account (billions USD) -1.25e-1.27e-1.40-1.35-1.34
Current Account (in % of GDP) -12.1e-12.2e-13.4-12.2-11.2

Source: IMF – World Economic Outlook Database, 2016

Note: (e) Estimated Data

 
Monetary Indicators 20162017201820192020
Rwandan Franc (RWF) - Average Annual Exchange Rate For 1 GHS 197.47191.13187.79172.98168.55

Source: World Bank, 2015

 

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Latest Update: June 2022