Rwanda GDP to grow 8 per cent in 2020, IMF

A vehicle is seen inside the first domestically built car rolled off the assembly line at Volkswagen's new factory in Kigali, Rwanda June 27, 2018. REUTERS/Jean Bizimana
Rwanda’s economy is expected to grow by 8 per cent this year and in 2021 versus an estimated 8.5 per cent in 2019, boosted by private investment and trade, the International Monetary Fund (IMF) said.

The small East African nation’s economy relies largely on agriculture, tourism and mining. The government also forecasts it will grow 8.5 per cent in 2019.

It grew 11.9 per cent in third quarter versus 7.7 per cent in the third quarter of 2018, reflecting an improved performance in manufacturing, construction and services.

“Upside risks (to growth) are a continuation of strong private investment, more regional trade, and growth payoffs from large public investment projects,” the IMF said.

SEE ALSO :Sudan passes 2020 budget with anticipated deficit of USD1.62 billion

Factors that could slow growth include high fuel prices, unpredictable weather and regional issues, the IMF said in a statement late on Friday.

It did not elaborate on those regional issues.

Early last year, Rwanda closed its main border crossing with neighbouring Uganda. It was briefly re-opened to cargo trucks in June but then closed again.

For More of This and Other Stories, Grab Your Copy of the Standard Newspaper.  

Rwandans were banned from travelling to Uganda, which has accused Rwanda of effectively imposing a trade embargo.

In August, the two countries’ presidents signed a pact agreeing the two sides would respect each other’s sovereignty, refrain from action that destabilises the other’s territory, and resume cross-border activities.

SEE ALSO :The curse of Kenya's fake riches

Do not miss out on the latest news. Join the Standard Digital Telegram channel HERE.

Get the latest summary of news in your email every morning. Subscribe below

* indicates required
IMFRwandaGDP