Rwanda
Rwanda: Stock of Total External Debt (percentage of GDP) and Debt Service (percentage of exports of goods and services) appears in African Economic Outlook 2009.
Rwanda: Real GDP Growth and Per Capita GDP (USD/PPP at current prices) appears in African Economic Outlook 2009.
Rwanda: Public Finances (percentage of GDP at current prices) appears in African Economic Outlook 2009.
Rwanda: Current Account (percentage of GDP at current prices) appears in African Economic Outlook 2009.
This chapter presents Rwanda’s taxpayer education programme. It first gives an overview of the whole programme and its objectives, followed by a focus on specific elements – the Taxpayers’ Day, tax friends clubs and tax advisory councils. It finally looks at the impacts and lessons learnt of those initiatives.
Real gross domestic product (GDP) growth remained strong in 2012, largely driven by the service and industry sectors. Agriculture grew by a moderate 3.0% during the first three quarters of 2012 due to unfavourable weather conditions. The diversification of markets for tea and minerals, particularly coltan, boosted the export sector, which increased by 24.8% in 2012. Development assistance is key to the 2013 economic outlook. Assuming that aid, suspended by some development partners in 2012, resumes in 2013, GDP growth is projected to moderate to 7.1% in 2013. This projection takes into account other factors, including programmed fiscal consolidation, which prioritises public spending towards strategic investments, which, in turn, dampens aggregate demand, as well as a tight monetary policy that is a deterrant to the expansion of private sector credit. A protracted suspension of foreign assistance, however, could undermine Rwanda’s economic prospects including a further reduction in real GDP growth and reverse progress towards the MDGs.
Rwanda’s economy has remained on a strong growth path with real gross domestic product (GDP) growth increasing to 8.8% in 2011 from 7.6% in 2010 higher than the initial projection of 7.0%. Growth was driven in 2011 by good harvests thanks to the crop-intensification programme, leading to an 8.2% expansion in the agriculture sector, an increase in exports largely due to rising commodity prices and high domestic demand supported by expanding credit to the private sector. Industry reported the highest growth rate, 15.1%, owing to a rebound in mining and construction, which grew by 15.5% and 22.3% respectively. Expansion in government spending and recovery in tourism have also contributed to growth. Growth in services at 7.2% was lower than the 9.6% reported in 2010, owing to slower growth in transport and communications as well as in financial services.
In 2010, the economy of Rwanda recovered from the sharp downturn it experienced in the previous year by growing at 7.4%. The outlook for 2011 and 2012 remains robust. The rebound is driven mainly by increased exports, expansion in the growth of services and construction sector. Inflation also has declined considerably in 2010 compared with 2009 when food prices increased by more than 20% in the wake of the global food crisis. The macroeconomic balance also improved in 2010 and is expected to remain stable in the mid-term.
In 2009 Rwanda’s gross domestic product (GDP) grew by 4.5% and is projected to recover moderately in 2010 to 5.1% (Figure 1). The impressive growth that the country has experienced over the last six years has largely been driven by the good performance of the agricultural sector. However, the government is making efforts to diversify the economy as a long-term strategy for sustaining longterm growth. In particular, Rwanda is the second most densely populated country in sub-Saharan Africa after Mauritius with a population density of 384 inhabitants per square kilometer in 2008. While practical steps have been taken to address environmental challenges stemming from population pressures, which threatened agricultural productivity, further productivity growth in agriculture is likely to require higher investment levels than has been the case before. In addition, 28% of Rwandans are food-insecure in spite of improvements in this field. The country also remains highly dependent on foreign aid, which accounted for more than 45% of the government budget in 2009.
The 2003 Constitution of Rwanda prohibits gender-based discrimination, but women in the country continue to face social inequalities. The 1992 Family Code improved the legal position of women in regard to marriage, divorce and child custody. In September 2008, Rwanda became the first country to have more female members of Parliament (56%) than male.
GDP GROWTH IN 2008 WAS ESTIMATED at slightly above 8.5 per cent, significantly higher than the average rate of 7.5 per cent registered during the 2005-07 period. The higher than expected growth in 2008 was largely a result of good climatic conditions that impacted favourably on agricultural production. In 2009, the economy is forecast to register lower growth of about 6.6 per cent. The lower growth forecast is a result of a combination of factors, including among others, a fall in exports, reduced government expenditures and a slowdown in agricultural growth. The weakening of economic growth is projected to extend into 2010, when the economy is expected to grow by 5.7 per cent.