Rwanda’s economy is projected to witness a 1.3 percent growth increase this year up from last year’s 5.2 percent, bringing the 2018 economic growth projection to a 6.5 percent.
On Tuesday, Rwanda’s central National Bank governor, John Rwangombwa in monetary policy and financial stability statement noted that the East African country is expected to “perform much better” than 2017.
Rwanda’s central bank noted that the expected growth would be as a result of good climatic condition that would boost agricultural produce, and in turn aid positive economic performance in the country.
Rwanda has a temperate tropical highland climate, with lower temperatures than are typical for equatorial countries due to its high elevation. Kigali, in the centre of the country, has a typical daily temperature range between 12 °C (54 °F) and 27 °C (81 °F), with little variation through the year. As a result of it climate, the country is vulnerable to weather shocks which affect the largely rain dependent agricultural sector.
However, with a stable macroeconomic environment and an increasingly attractive investment climate, Rwanda is creating a favorable environment for business start-ups, entrepreneurs and other private sector actors which would spur economic growth.
About 70 percent of the country’s population is engaged in agriculture as the economy is based mostly on subsistence agriculture. With simple tools, local farmers produce crops like maize and vegetables for local use, while tea and coffee are produced for exportation.
The East African country’s inflation is expected to be nearly 5.0 percent this year.