African Economy Slows, Rwanda’s Economy Resilient

Filed in: rwanda, economic growth

Written by Wesley Cate on May 27, 2015

The Wall Street Journal reports that Africa’s overall growth rate will slow to 4 percent from its historic 4.4 percent. The stall, according to the journal, is due to the fall in oil prices as well as slowed growth in the developed world and in China. Africa’s economic output is still higher than the global rate of 2.9 percent.

For its part, Rwanda has seen a slight slowdown at 6.5 percent, which is lower than the projected 7 percent growth. According to Reuters, part of the slowdown in Rwanda’s economy is due to a decline in foreign aid, which accounts for 20 percent of Rwanda’s overall budget. Nevertheless, the economy is expected to remain stable.

Looking ahead, the African Economic Outlook projects that Rwanda should see an uptick in growth rates as a result of public and private investment as well as gains in the agriculture and service sectors.