Rwanda’s GDP Grows by 7.8% in Q2 2025

Kigali, Rwanda — Rwanda’s economy expanded by 7.8 percent in the second quarter of 2025, according to new figures released by the Ministry of Finance and Economic Planning. While the performance remains strong, it represents a slowdown from the 10.2 percent growth recorded in the same quarter of 2024.

Sector Performance: Agriculture, Industry, and Services

Agriculture Posts 8% Growth

The agricultural sector grew by around 8%, reflecting improved harvests and continued government investment in modernization programs. Agriculture remains a key pillar of Rwanda’s economy, employing a majority of the population and providing food security.

Industry Expands by 7%

Industry recorded a 7% increase, supported by construction projects, energy, and manufacturing activities. This reflects ongoing infrastructure development and private sector investment, although rising import costs continue to weigh on some industries.

Services Sector Leads with 9% Growth

The services sector, which is Rwanda’s largest economic driver, grew by 9%. Tourism recovery, trade, and financial services were among the key contributors. Analysts note that while services remain strong, global economic headwinds have slightly moderated the pace compared to 2024.

GDP Value at Current Market Prices

According to the report, Rwanda’s GDP at current market prices reached approximately Frw 5,798 billion in the second quarter of 2025. This is a significant rise from Frw 4,979 billion recorded in the same quarter of 2024.

For the 2024/25 fiscal year, GDP growth stood at 6.3%, underscoring Rwanda’s resilience in the face of regional and global economic challenges.

Why Growth Slowed from 10.2% to 7.8%

External Factors

Economists link the slowdown to weaker global demand for exports and higher import costs. These factors have constrained industrial performance and put pressure on Rwanda’s trade balance.

Domestic Challenges

The services sector is still adjusting to shifts in consumer spending patterns and recovering from global disruptions. Inflationary pressures and climate variability also remain significant risks, particularly for the agricultural sector.

Government Response and Future Outlook

Officials from the Ministry of Finance and Economic Planning highlighted that growth, while slower, remains among the strongest in East Africa.

“This growth demonstrates the resilience of Rwanda’s economy, but sustaining higher growth requires strategic investment in productive sectors and careful macroeconomic management,” the Ministry said in its statement.

Investing in climate-resilient agriculture to secure food supply.

Expanding infrastructure and digital innovation to stimulate industry.

Enhancing regional trade integration within the East African Community.

Strengthening domestic revenue mobilization to finance long-term development.

What This Means for Rwandans

For citizens, the numbers bring both optimism and caution. The economy is still one of the fastest-growing on the continent, but the reduced pace raises concerns about:

Job creation for the growing youth population.

• Inflation and rising cost of living.
• Household incomes and purchasing power.
• The next quarters will be crucial in determining whether Rwanda can regain double-digit growth or settle into a slower but more sustainable expansion path.