Rwanda Economy Profile 2008

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)

$8.576 billion (2007 est.)

GDP (official exchange rate)

$2.836 billion (2007 est.)

GDP - real growth rate

6% (2007 est.)

GDP - per capita (PPP)

$1,000 (2007 est.)

GDP - composition by sector

agriculture: 38.2%
industry: 20.1%
services: 41.7% (2007 est.)

Population below poverty line

60% (2001 est.)

Household income or consumption by percentage share

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

Inflation rate (consumer prices)

8% (2007 est.)

Investment (gross fixed)

22.7% of GDP (2007 est.)

Labor force

4.6 million (2000)

Labor force - by occupation

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

Unemployment rate

NA%

Distribution of family income - Gini index

46.8 (2000)

Budget

revenues: $702.6 million
expenditures: $779.6 million; including capital expenditures of $NA (2007 est.)

Industries

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

Industrial production growth rate

4.8% (2007 est.)

Electricity - production

95 million kWh (2005)

Electricity - consumption

198.4 million kWh (2005)

Electricity - exports

10 million kWh (2005 est.)

Electricity - imports

120 million kWh (2005)

Oil - production

0 bbl/day (2005 est.)

Oil - consumption

5,300 bbl/day (2005 est.)

Oil - imports

5,165 bbl/day (2004)

Oil - exports

0 bbl/day (2004)

Oil - proved reserves

0 bbl (1 January 2006 est.)

Natural gas - production

0 cu m (2005 est.)

Natural gas - consumption

0 cu m (2005 est.)

Natural gas - exports

0 cu m (2005 est.)

Natural gas - imports

0 cu m (2005)

Natural gas - proved reserves

54.32 billion cu m (1 January 2006 est.)

Current Account Balance

-$172.8 million (2007 est.)

Agriculture - products

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

Exports

$170.8 million f.o.b. (2007 est.)

Exports - commodities

coffee, tea, hides, tin ore

Exports - partners

China 10.3%, Germany 9.7%, US 4.3% (2006)

Imports

$472.5 million f.o.b. (2007 est.)

Imports - commodities

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

Imports - partners

Kenya 19.6%, Germany 7.9%, Uganda 6.8%, Belgium 5.1% (2006)

Reserves of foreign exchange and gold

$511 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)

Exchange rates

Rwandan francs per US dollar - 585 (2007), 560 (2006), 610 (2005), 574.62 (2004), 537.66 (2003)

Fiscal year

calendar year