Rwanda GDP grew by 3.5% to 5% in 2009
Rwanda - Economic - 02-08-2010

Rwandaquotes economy grew at 3.5% to 5% in 2009, down from a forecast 7% to 8%, but is expected to fare better in 2010, the central bank said on 5 February 2010. Governor Francois Kanimba said he saw better output in 2010, driven by rising global demand for Rwandaquotes main exports coffee, tea and minerals and improved liquidity in the banking sector. quoteWithout giving you a precise number, I do expect a very strong growth rate in the economy in Rwanda in 2010,quote he said. quoteWe expect a significant improvement in sectors like coffee, tea and even mining because now the global demand of mineral products is resuming and prices are slightly increasing.quote Rwandaquotes economy grew by 11.2% in 2008, and at an average of 7% to 8% of over the last decade, he said. The Rwandan economy is being rebuilt after the 1994 genocide of 800,000 ethnic Tutsis and politically moderate Hutus. The government has focused on restructuring the tea and coffee industries and the financial system, while investing in energy, transport and telecommunications infrastructure.
Kanimba said the central African countryquotes agricultural sector, which accounts for around one third of GDP, will grow at around 9% to 10% in 2010. Inflation will rise slightly in 2010, from 5.7% in 2009, but remain below 10% as strong agricultural production offsets mounting global inflation, he said. quoteInflation in Rwanda in 2010 will be higher than what we achieved in 2009, but I still hope to keep it in single digit numbers,quote Kanimba said. The tiny landlocked central African economyquotes trade balance is also expected to improve slightly following a 29% decline in the value of exports coupled with an 8% rise in imports in 2009, he said. Rwandaquotes balance of payments outlook is positive after a USD 142m surplus in 2009, augmented by USD 100m special liquidity allocation by the IMF, Kanimba said. Central bank cushioned 2009quotes liquidity crunch by reducing its reserve requirement ratio for commercial banks from 8% to 5%. It also introduced liquidity facilities, collateralised by financial market instruments, which allowed banks to extend credit to the private sector in Q4. quoteBased on the trend of inflation for the time being, the central bank is ready to continue to sustain lending to the banks to support increased liquidity,quote Kanimba said.

Source: Reuters