The Rwandan economy is expected to grow at a slower pace this year compared to 2024, while public spending for the 2025/26 fiscal year is expected to increase by about one-fifth, said Finance Minister Yusuf Murangwa.
Minister Murangwa stated that the economy is expected to grow by 7.1% this year and reach 7.5% in 2026. The economy is projected to grow by 7.4% in 2027 and by 7.0% the following year, he told Parliament.
Murangwa, who is presenting the 2025/26 budget proposal (July-June), did not provide a reason for the expected slowdown in growth.
Additionally, the government plans to spend $5.01 billion in 2025/26 (July-June).
In 2024, Rwanda recorded a real GDP growth of 8.9%, surpassing the 8.2% growth in 2023. This performance was mainly driven by the services sector (48% of GDP), the industrial sector (21%), and agriculture (25%).
For 2025, projections vary: the World Bank anticipates an average growth of 7.7%, supported by the recovery of global tourism, construction projects, and manufacturing activity. In contrast, the African Development Bank expects a slight deceleration to 6.6% due to climate shocks affecting agriculture.
Rwanda's economy largely depends on agriculture, tourism, and manufacturing.
