Rwanda International Reserves (USD bn)

International Reserves in Rwanda

In the final quarter of 2022, GDP growth decelerated to 7.2% year on year (Q3: +10.0% yoy), the softest since Q1 2021. Consequently, the economy grew 8.2% in 2022, a softer expansion than 2021’s 10.9% post-pandemic rebound. Looking at the details of Q4, the deceleration was driven by softer private consumption and exports expansions. Private consumption was rather resilient, despite price pressures intensifying to 32.2% on average in Q4. Meanwhile, fixed investment declined at a slower pace in Q4 from the previous quarter. Less positively, government spending contracted marginally in the final three months of 2022. In terms of production, the rebound in the industrial sector and stronger agricultural activity were unable to offset the slowdown in the services sector. In 2023, devastating floods in May will have impacted activity.