Economy grew by 7.5% in the 3rd quarter of 2023, building on a 6% increase in the 3rd quarter and 9.2 % in the 1st quarter. Services contributed 46% to growth, Agriculture at 24%, and Industry at 21%. Net taxes contributed 7% to the overall expansion.
1. Gross Domestic Product and its structure
In the third quarter of 2023, GDP at current market prices was estimated at Frw 4,249 billion, up from Frw 3,584 billion in the same quarter of 2022. In this quarter, the services sector contributed 46 percent to GDP, agriculture sector contributed 25 percent to the GDP, industry sector contributed 21 percent to the GDP and 7 percent was attributed to adjustment for taxes and subsidies on products.
2. Growth rate by kind of activity
In this quarter, estimates calculated in 2017 prices show that GDP was 7.5 percent higher when compared to the same quarter of 2022.
2.1. Agriculture
In this quarter, estimates calculated in 2017 prices show that GDP was 7.5 percent higher when compared to the same quarter of 2022. Agricultural sector grew by 3 percent and contributed 0.7 percentage points to overall GDP growth. Within agriculture, food crops production increased by 3 percent while the production of export crops decreased by 15 percent.
2.2. Industry
Industrial sector grew by 14 percent and contributed 2.3 percentage points to the overall GDP growth. Within industry, mining & quarrying increased by 14 percent, manufacturing activities increased by 8 percent while construction activities increased by 24 percent.
The growth in manufacturing was boosted mainly by 16 percent increase in food processing; 14 percent increase in manufacturing of textiles, clothing & leather goods; 17 percent increase in manufacturing of wood & paper; printing and 10 percent increase in manufacturing of chemicals rubber & plastic products.
2.3. Services
Service sector grew by 19 percent and contributed 4.4 percentage points to the overall GDP growth. Within services, wholesale and retail trade increased by 8 percent; transport services increased by 16 percent; hotel & restaurants grew by 5 percent and financial services increased by 16 percent, and telecommunication services increased by 20 percent. Public administration services increased by 2 percent and education services increased by 16 percent, however Health services decreased by 2 percent following a growth of 13 percent in the same quarter of 2022.
3. Expenditure GDP
In the third quarter of 2023, total final consumption expenditure increased by 3 percent, with household final consumption expenditure increasing by 8 percent while government final consumption expenditure decreased by 15%. Exports of goods & services increased by 11 percent; imports of goods & services increased by 9 percent while gross capital formation increased by 26 percent. (End)