Economic trends
After having recorded a steady growth, stimulated by an expansionary fiscal policy and investments in education and infrastructures, the economy of Rwanda has slowed down under the effect of the global recession, due to less activity, drop in raw material prices and a credit crisis. From 11.2% in 2008, the growth rate declined to 5.4% in 2010, but it should recover during the next following years.
Rwanda is involved in the PSI program (The Policy Support Instrument) with the IMF in order to strengthen its economy, to promote a long-term growth and to reduce the country's dependence on foreign aid. The government gives preference to the diversification of its economy. As well as the program "Vision 2020" which establishes priorities for the development of non-agricultural activities, reinforcement of the effectiveness of services and an improvement in targeting social protection measures.
Rwanda is a heavily indebted poor country (HIPC) where the majority of the population lives below the poverty line and where almost 30% of the population suffers from the lack of food security.
Main branches of industry
International trade
Rwanda is open to trade. Indeed, the economic policy aims at increasing the ratio of exports over imports in order to boost the economy, with a view of developing industry and the tertiary sector in particular. Foreign trade represents more than one third of the GDP.
The country's customs duties and non-tariff barriers are rather low (an average of 14.4%). The unstable geopolitical environment and an unskilled workforce are the main obstacles to the Rwandese economy.
The country imports much more than what it exports and this creates a structural trade deficit, a trend that is expected to continue during the next coming years.
Rwanda top trade partners are the EAC (East African Community) member countries, the European Union and the United Arab Emirates.
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