- The COVID 19 Pandemic and the resultant lockdown has led to a 12.4 percent drop in Rwanda’s Gross Domestic Product (GDP) in the second quarter from July to September.
- The decline was attributed to a drop in revenues in the transport, trade, education, construction, exports, hotels and restaurants, and agriculture sectors.
The COVID 19 Pandemic and the resultant lockdown has led to a 12.4 percent drop in Rwanda’s Gross Domestic Product (GDP) in the second quarter from July to September. The country went for a total lockdown in March and only partially reopened from May 4. Many businesses, including bars and entertainment facilities, continue to remain closed as a measure to stop the spread of the novel coronavirus.
This was revealed while presenting the Status of the Economy and the Budget in the Parliament by the Minister of Finance and Economic Planning Uzziel Ndagijimana. The decline was attributed to a drop in revenues in the transport, trade, education, construction, exports, hotels and restaurants, and agriculture sectors.
Rwanda’s agriculture sector that usually accounts for more than 30 percent of GDP, fell by 2 percent in the Q2 of 2020 compared to the same quarter in 2019 due to impact of climate-related disasters of 2019. Most of its exports showed a decline resulting in a 21.4 percent and 15.1 percent decrease in value and volume respectively.
The Minister Ndagijimana added that the economic distress caused by Coronavirus Pandemic has moved Rwanda’s status moved from Lower risk of debt status to medium. He assured the Parliament that, the country’s debt remains sustainable despite the increase of the debt with no worries about defaulting. According to official statistics, Rwanda’s total public debt in nominal terms as of the end of June 2020, stood at 63 percent of GDP, of which 49 percent was external and 13.5 percent domestic. It is estimated to touch 66 percent of GDP by the end of next month.
