- Rwanda’s exports have bounced back recording a growth of 8.8 per cent in 2021. The rise in global commodity prices and improvement of trade in the region helped the growth.
After the contraction in 2020 due to the Pandemic, Rwanda’s exports have bounced back recording a growth of 8.8 per cent in 2021. The rise in global commodity prices and improvement of trade in the region helped the growth. Exports in 2021 stood at $1,531 million against $1,407.5 million in 2020 according to the monetary policy and financial stability report of the central bank of Rwanda
Central bank governor, John Rwangombwa, stated that the rise in growth was led by merchandise exports touching $1,167.8 million compared to $761.3 million in 2020. The share of traditional exports— coffee, tea, minerals— grew by 41.1 per cent, non-traditional exports — manufactured products and horticulture 56.7 per cent, re-exports by 49.2 per cent and informal cross border exports increased by 152.7 per cent. Most of the export destinations for Rwandan goods are Africa claiming 48%. Asia’s share stood at about 41%.
At the same time, Rwanda’s import bill rose by 5.8 per cent to $3,569.3 million. The country spent $3,201 million on merchandise imports in 2021, 16.5 per cent higher than the previous year to support growing domestic industrial production. Overall, the trade deficit widened by 3.7 per cent. The Ongoing war between Russia and Ukraine is expected to further push the import bill.
The central bank reported that the economy grew by 10.9% after a contracting by 3.4 per cent in 2020.It is expected to sustain the growth in 2022 by the reopening of the economy and government programmes to push growth. However the continued Ukraine war could create inflationary pressures.
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