Rwanda Economy Profile 2009

Economy - overview

Rwanda is a poor rural country with about 90% of the population engaged in (mainly subsistence) agriculture. It is the most densely populated country in Africa and is landlocked with few natural resources and minimal industry. Primary foreign exchange earners are coffee and tea. The 1994 genocide decimated Rwanda's fragile economic base, severely impoverished the population, particularly women, and eroded the country's ability to attract private and external investment. However, Rwanda has made substantial progress in stabilizing and rehabilitating its economy to pre-1994 levels, although poverty levels are higher now. GDP has rebounded and inflation has been curbed. Despite Rwanda's fertile ecosystem, food production often does not keep pace with population growth, requiring food imports. Rwanda continues to receive substantial aid money and obtained IMF-World Bank Heavily Indebted Poor Country (HIPC) initiative debt relief in 2005-06. Rwanda also received Millennium Challenge Account Threshold status in 2006. The government has embraced an expansionary fiscal policy to reduce poverty by improving education, infrastructure, and foreign and domestic investment and pursuing market-oriented reforms, although energy shortages, instability in neighboring states, and lack of adequate transportation linkages to other countries continue to handicap growth.

GDP (purchasing power parity)

$9.706 billion (2008 est.)
$8.728 billion (2007 est.)
$8.089 billion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$4.459 billion (2008 est.)

GDP - real growth rate

11.2% (2008 est.)
7.9% (2007 est.)
7.3% (2006 est.)

GDP - per capita (PPP)

$1,000 (2008 est.)
$900 (2007 est.)
$800 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 43.2%
industry: 22.3%
services: 34.5% (2008 est.)

Population below poverty line

60% (2001 est.)

Labor force

4.446 million (2007)

Labor force - by occupation

agriculture: 90%
industry and services: 10% (2000)

Unemployment rate

NA%

Household income or consumption by percentage share

lowest 10%: 2.1%
highest 10%: 38.2% (2000)

Distribution of family income - Gini index

46.8 (2000)
28.9 (1985)

Investment (gross fixed)

22% of GDP (2008 est.)

Budget

revenues: $930.4 million
expenditures: $1.023 billion; including capital expenditures of $NA (2008 est.)

Inflation rate (consumer prices)

15.4% (2008 est.)
9.1% (2007 est.)

Central bank discount rate

NA% (31 December 2008)
12.5% (31 December 2007)

Commercial bank prime lending rate

NA% (31 December 2008)
15.84% (31 December 2007)

Stock of money

$233.6 million (31 December 2005)

Stock of quasi money

$227.4 million (31 December 2005)

Stock of domestic credit

$NA (31 December 2008)
$209.2 million (31 December 2005)

Industries

cement, agricultural products, small-scale beverages, soap, furniture, shoes, plastic goods, textiles, cigarettes

Industrial production growth rate

7.5% (2008 est.)

Electricity - production

134 million kWh (2006 est.)

Electricity - production by source

fossil fuel: 2.3%
hydro: 97.7%
nuclear: 0%
other: 0% (2001)

Electricity - consumption

234.6 million kWh (2006 est.)

Electricity - exports

10 million kWh (2007 est.)

Electricity - imports

130 million kWh (2007 est.)

Oil - production

0 bbl/day (2007 est.)

Oil - consumption

5,320 bbl/day (2006 est.)

Oil - imports

5,597 bbl/day (2005)

Oil - exports

0 bbl/day (2005)

Oil - proved reserves

0 bbl (1 January 2006 est.)

Natural gas - production

0 cu m (2007 est.)

Natural gas - consumption

0 cu m (2007 est.)

Natural gas - exports

0 cu m (2007 est.)

Natural gas - imports

0 cu m (2007 est.)

Natural gas - proved reserves

56.63 billion cu m (1 January 2008 est.)

Current Account Balance

-$265 million (2008 est.)
-$147 million (2007 est.)

Agriculture - products

coffee, tea, pyrethrum (insecticide made from chrysanthemums), bananas, beans, sorghum, potatoes; livestock

Exports

$213 million (2008 est.)
$184 million (2007 est.)

Exports - commodities

coffee, tea, hides, tin ore

Exports - partners

China 9.1%, Thailand 8.8%, Germany 7.5%, US 4.6%, Belgium 4.2% (2008)

Imports

$809 million (2008 est.)
$637 million (2007 est.)

Imports - commodities

foodstuffs, machinery and equipment, steel, petroleum products, cement and construction material

Imports - partners

Kenya 17.1%, China 6.2%, Uganda 6%, Belgium 5.9%, Germany 5.1% (2008)

Reserves of foreign exchange and gold

$596 million (31 December 2008 est.)
$552.8 million (31 December 2007 est.)

Debt - external

$1.4 billion (2004 est.)

Market value of publicly traded shares

$NA

Economic aid - recipient

$576 million (2005)

Currency (code)

Rwandan franc (RWF)

Currency (code)

RWF

Exchange rates

Rwandan francs (RWF) per US dollar - 550 (2008 est.), 585 (2007), 560 (2006), 610 (2005), 574.62 (2004)

Fiscal year

calendar year