Rwanda Economy - 2022

Economic overview

Rwanda is a rural, agrarian country with agriculture accounting for about 63% of export earnings, and with some mineral and agro-processing. Population density is high but, with the exception of the capital Kigali, is not concentrated in large cities – its 12 million people are spread out on a small amount of land (smaller than the state of Maryland). 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 well beyond pre-1994 levels. GDP has rebounded with an average annual growth of 6%-8% since 2003 and inflation has been reduced to single digits. In 2015, 39% of the population lived below the poverty line, according to government statistics, compared to 57% in 2006.

The government has embraced an expansionary fiscal policy to reduce poverty by improving education, infrastructure, and foreign and domestic investment. Rwanda consistently ranks well for ease of doing business and transparency.

The Rwandan Government is seeking to become a regional leader in information and communication technologies and aims to reach middle-income status by 2020 by leveraging the service industry. 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. In 2016, the government launched an online system to give investors information about public land and its suitability for agricultural development.

Real GDP (purchasing power parity)

$27.18 billion (2020 est.)

$28.13 billion (2019 est.)

$25.7 billion (2018 est.)

note: data are in 2017 dollars

Real GDP growth rate

6.1% (2017 est.)

6% (2016 est.)

8.9% (2015 est.)

Real GDP per capita

$2,100 (2020 est.)

$2,200 (2019 est.)

$2,100 (2018 est.)

note: data are in 2017 dollars

GDP (official exchange rate)

$9.136 billion (2017 est.)

Inflation rate (consumer prices)

3.3% (2019 est.)

-0.3% (2018 est.)

8.4% (2017 est.)

Credit ratings

Fitch rating: B+ (2014)

Moody's rating: B2 (2016)

Standard & Poors rating: B+ (2019)

note: The year refers to the year in which the current credit rating was first obtained.

GDP - composition, by sector of origin

agriculture: 30.9% (2017 est.)

industry: 17.6% (2017 est.)

services: 51.5% (2017 est.)

GDP - composition, by end use

household consumption: 75.9% (2017 est.)

government consumption: 15.2% (2017 est.)

investment in fixed capital: 22.9% (2017 est.)

investment in inventories: 0.5% (2017 est.)

exports of goods and services: 18.2% (2017 est.)

imports of goods and services: -32.8% (2017 est.)

Agricultural products

bananas, sweet potatoes, cassava, potatoes, plantains, beans, maize, gourds, milk, taro

Industries

cement, agricultural products, small-scale beverages, soap, furniture, shoes, plastic goods, textiles, cigarettes

Industrial production growth rate

4.2% (2017 est.)

Labor force

6.227 million (2017 est.)

Labor force - by occupation

agriculture: 75.3%

industry: 6.7%

services: 18% (2012 est.)

Unemployment rate

2.7% (2014 est.)

Youth unemployment rate (ages 15-24)

total: 17.2%

male: 15.5%

female: 19% (2020 est.)

Population below poverty line

38.2% (2016 est.)

Gini Index coefficient - distribution of family income

43.7 (2016 est.)

51.3 (2010 est.)

Household income or consumption by percentage share

lowest 10%: 2.1%

highest 10%: 43.2% (2011 est.)

Budget

revenues: 1.943 billion (2017 est.)

expenditures: 2.337 billion (2017 est.)

Budget surplus (+) or deficit (-)

-4.3% (of GDP) (2017 est.)

Public debt

40.5% of GDP (2017 est.)

37.3% of GDP (2016 est.)

Taxes and other revenues

21.3% (of GDP) (2017 est.)

Fiscal year

calendar year

Current account balance

-$622 million (2017 est.)

-$1.336 billion (2016 est.)

Exports

$2.25 billion (2019 est.) note: data are in current year dollars

$2.04 billion (2018 est.) note: data are in current year dollars

Exports - partners

United Arab Emirates 35%, Democratic Republic of the Congo 28%, Uganda 5% (2019)

Exports - commodities

gold, refined petroleum, coffee, tea, tin (2019)

Imports

$3.74 billion (2019 est.) note: data are in current year dollars

$3.34 billion (2018 est.) note: data are in current year dollars

Imports - partners

China 17%, Kenya 10%, Tanzania 9%, United Arab Emirates 9%, India 7%, Saudi Arabia 5% (2019)

Imports - commodities

refined petroleum, gold, raw sugar, packaged medicines, broadcasting equipment (2019)

Reserves of foreign exchange and gold

$997.6 million (31 December 2017 est.)

$1.104 billion (31 December 2016 est.)

Debt - external

$3.258 billion (31 December 2017 est.)

$2.611 billion (31 December 2016 est.)

Exchange rates

Rwandan francs (RWF) per US dollar -

839.1 (2017 est.)

787.25 (2016 est.)

787.25 (2015 est.)

720.54 (2014 est.)

680.95 (2013 est.)