(Ecofin Agency) – Between 1er Between January and March 31 of the current year, economic growth was mainly driven by increased household consumption and rising investments.
Rwanda’s real GDP grew by 9.7% in the first quarter of 2024, outpacing the average growth rate of 8.2% recorded in 2023, the World Bank announced in a report published on Tuesday, September 17, 2024.
“Robust household consumption, reflecting some improvements in the labor market, as well as strong investments were the main drivers of growth in Rwanda in early 2024. “, indicated the institution, recalling that these performances were recorded in a context marked by a slowdown in the global economy.
Inflation, which peaked at over 21% in 2023, has since moderated, partly due to tighter monetary policies and lower food prices. In August 2024, the inflation rate fell to 5% year-on-year, within the National Bank of Rwanda’s target range.
Titled “Accelerating skills development to foster private sector growth in Rwanda”the report states that the Rwandan labor market has seen a strong recovery, with more than 500,000 new jobs created in the fourth quarter of 2023, marking the largest reduction in unemployment since late 2019.
“Rwanda’s labor market expansion has been broad-based, with women benefiting slightly more than men. To capitalize on its youth, Rwanda needs to increase labor force participation, as 2.8 million of the 8.1 million working-age population are employed full-time,” said Calvin Djiofack Zebaze, World Bank lead economist for Rwanda.
The report also highlights that skills development is crucial to boost private sector growth in the country, saying that significant efforts are needed to increase public investment in education, particularly in technical and vocational education and training (TVET) and higher education, and ensure a better match between qualifications and labour market needs.
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