KIGALI (Reuters) – Rwanda’s economic growth slowed for the third straight quarter between July and September last year, reaching its lowest level since 2009, official data showed on Tuesday.
The east African country’s economy expanded 3.9 percent in the third quarter of 2013 against 6.7 percent a year earlier, due largely to a slowdown in agricultural and services output.
Rwanda has not posted a year-on-year quarterly growth figure this low since the third quarter of 2009 when the economy expanded 3.5 percent, National Institute of Statistics of Rwanda data showed.
Mark Bohlund, senior economist for sub-Saharan Africa at IHS Global Insight, said growth had suffered from a tightening of fiscal policy during the first half of the year, even after donors reinstated budget support earlier suspended over Rwanda’s alleged support of Congolese rebels.
“The poor Q3 GDP growth reading contrasts (with) positive developments in other areas, such as a reduction in aid dependency and the budget deficit and continued moderation in inflation, which should be conducive for longer-term growth and macroeconomic stability,” Bohlund said.
Last month the International Monetary Fund said Rwanda, which aims to become a middle income country by 2020, needed to bolster domestic revenues to finance its development targets without placing strain on the budget.
The IMF forecast the Rwandan economy would expand 6.6 percent in 2013 before accelerating to 7.5 percent this year.
