Rwanda's GDP drop by 12.4% following Covid-19 pandemic outbreak
In the second quarter of 2020, GDP at current market prices was estimated at Frw 2,175 billion, down from Frw 2,346 billion in Q2 of 2019. Services continue to lead in terms of shares to GDP with 45% compared to 28% and 19% shares for agriculture and industry respectively.
In 2020, Rwanda as the rest of the world is experiencing challenging times caused by the Covid-19 pandemic. In addition to the public health challenge, COVOD-19 has also severely affected many economies following measures that are being implemented to contain the spread of the virus.
Quarter two of 2020 coincides with the first reported cases in Rwanda and the peak of restrictive measures to contain the virus in late march and April that included a total lockdown of all activities. Although containment measures were relaxed from May 2020, not all were removed due to continued risks of community spread of the virus. These measures have severely constrained economic activity in both Rwanda and globally.
In Q2 2020, Rwanda’s GDP decreased by 12.4%. Agriculture dropped by 2%, Industry dropped by 19% while Services dropped by 16%.
Economic sectors that were mostly affected include: Education dropping by 67%, hotels and restaurants that dropped by 62%, transport activities that dropped by 41% where air transport dropped by 96% and land transport decreased by 18%. Trade dropped by 22%, construction dropped by 20%, financial services dropped by 8% and public administration dropped by 3%.
In services, some activities such as: Hotels, restaurants, entertainment, tourism and education have not fully resumed.
In fact, the only economic sectors that experienced growth are: Information and communication sector that grew by 33%, the health sector due to investments in the sector to deal with COVID-19 grew by 5% and the water and waste management sector that grew by 1%.
By:KAYITARE Ivan Patrick
Team Leader / National Accounts Statistics