CIA -1
PRINCIPLES OF MACRO ECONOMICS
DANIEL.M
1934103
RWANDA
Rwanda is one the country in Africa. where most of the people live in the rural areas. The economy of Rwanda has undergone rapid industrialization due to a successful government policy. Since the early 2000s. Rwanda has witnessed an economic boom improving the living standards of many Rwandans. Rwanda suffers from a shortage of arable land and lack of access to sea routes, limiting the possibility of developing a thriving export industry. the country is forced to import food and other products, including construction materials, petroleum products, steel, machinery, and tools.
CURRENT ECONOMIES AND PROSPECTS
The country entered a high period of economy growth in the year 2006, it managed to register 8% of the economic growth. a record it has sustained since, turning it into one of the fastest-growing economies in Africa. This sustained economic growth has succeeded in reducing poverty and also reducing fertility rates, with growth between 2006 and 2011 reducing the percentage of the country's population living in poverty from 57% to 45%. The country's infrastructure has also grown rapidly, with connections to electricity going from 91,000 in 2006 to 215,000 in 2011.
The population of the country is 12,374,397. In the current year 2019.
World trade agreements
Rwanda is one the 19th member of COMESA. and joined the EAC IN THE YEAR 2007. It is also a member of the economics community of central African States
INDUSTRY
The industrial sector is small, contributing 16% of GDP in 2012. Rwanda's manufacturing sector is dominated by the production of import substitutes for internal consumption. The larger enterprises produce beer, soft drinks, cigarettes, hoes, wheelbarrows, soap, mattresses, plastic pipe, roofing materials, and bottled water. Their products manufactured include agricultural products, small-scale beverages, soap, furniture, shoes, cement, plastic goods, textiles and cigarettes
Here’s Rwanda’s economy today:
1. Rapid growth
One of the fastest growing economies in Central Africa, Rwanda notched up GDP growth of around 8% per year between 2001 and 2014.
The International Monetary Fund expects the economy to slow down this year and pick up in 2018, forecasting around 6% growth in 2016 compared with 6.9% last year.
2 .Poverty rates
The country reduced the percentage of people living below the poverty line from 57% in 2005 to 45% in 2010. Despite this, 63% of the population still live in extreme poverty, defined by the World Bank as less than $1.25 a day.
3. Reducing inequality
Life expectancy, literacy, primary school enrolment and spending on healthcare have all improved.
Rwanda has also made big strides towards gender equality – almost 64% of parliamentarians are women, compared to just 22% worldwide – which has enabled women in the country to make economic advances. Women are now able to own land and girls can inherit from their parents.
INFLATION RATE
Rwanda's annual inflation peaked to 7.2 percent in October 2019 from 4.6 percent in the previous month. This is the highest inflation rate since August 2017, mainly due to prices of food & non-alcoholic beverages (14.2 percent vs 8.2 percent in September) and alcoholic beverages & tobacco (7 percent vs 3.7 percent), as cigarettes cost doubled following recent tax revisions. Meanwhile, cost slowed for transport (1.4 percent vs 1.3 percent); furnishings (4.1 percent vs 4.7 percent); clothing & footwear (6.7 percent vs 7.4 percent). At the same time, inflation was steady for housing & utilities (at 0.3 percent). On a monthly basis, consumer prices were up 1.4 percent, after a 1.6 percent rise in the previous month. Inflation Rate in Rwanda averaged 5.80 percent from 1997 until 2019, reaching an all-time high of 28.10 percent in February of 1998 and a record low of -15.80 percent in February of 1999. In Rwanda, the inflation rate measures a broad rise or fall in prices that consumers pay for a standard basket of goods. This page provides - Rwanda Inflation Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Rwanda Inflation Rate - actual data, historical chart and calendar of releases - was last updated on December of 2019.
RWANDA GDP GROWTH RATE
Rwanda's economy advanced 12.2% year-on-year in the second quarter of 2019, quickening from an 8.4% growth in the previous period. It was the fastest expansion since the first quarter of 2009. The services sector grew 12%, faster than 8% in Q1, mainly boosted by wholesale & retail trade (23% vs 7%); transport (17% vs 11%); hotels & restaurants (13% vs 7%) and public administration (12% vs -3%). Also, the industrial sector continued to rise solidly (21% vs 18%), namely due to manufacturing (16% vs 8%); mining (13% vs 12%) and construction (32% vs 30%). Meantime, agriculture grew 5%, above 4% in the prior period, driven by livestock & livestock products (14%, the same pace as in Q1); export crops (6% vs -9%); food crops (4%, the same pace as in Q1) and forestry (5%, the same pace as in Q1). On a quarterly basis, the GDP expanded 3.5 percent, following a 0.5 percent contraction in the first quarter. GDP Annual Growth Rate in Rwanda averaged 7.69 percent from 2000 until 2019, reaching an all-time high of 13.40 percent in the first quarter of 2007 and a record low of 1.90 percent in the first quarter of 2017.
EDUCATION SYSTEM OF RWANDA
Post-genocide years focused on human capital rebuilding and increasing enrolment rates. 1996 saw the introduction of 6-year primary, 3-year lower secondary, and 3-year upper secondary education, where Kinyarwanda was the language of teaching up to lower secondary, which changed to French and English in upper secondary.
In 2006, The 4th Education Sector Strategic Plan (ESSP 2006–2010) introduced fee-free schooling for 9YBE - 9 Year Basic Education - including primary and lower secondary. While enrolment rates have gone up, school related costs remain a barrier for many.[2]
In 2008, in an effort to stimulate Rwanda's integration with the East African Community (EAC), English was adopted as the national teaching language, and only the first 3 years of primary are still taught in Kinyarwanda.
education accounts for 15% of the national budget of which 9.5% is allotted to H.E.
In 2003 the state's total expenditure on education was 48 Billion Rwandan Francs (£48.6 million or $86m).
Between 1996 and 2001 total public spending rose from 3.2% to 5.5%. However, much of this was channelled into Secondary and Tertiary education at the expense of Primary education.
TRANSPORT SYSTEM OF RWANDA
The transport system In Rwanda centres primarily around the road network. Paved roads lie between the capital, Kigali, and most others major cities and towns in the country. Rwanda is also linked by roads with the other countries in the African great lakes. The country has an international airport at the capital, serving both domestic and international destinations, and also has a limited. The large amount of investments in the transport infrastructure has been made by the government science in the 1994 wit the aid from the European union, china and japan and others.
Rwanda has a total of 12,000km of the which 1000km are paved, the reminder are dirt roads with quality varying from the smooth hard surface drainage to rutted, extremely uneven tracks passable only with a four-wheel drive vehicle
CONCLUSION
Rwanda has recently enjoyed economic growth rates; Rwanda has emerged as a model for economic development. The country has taken great strides just 25 years since its horrific genocide. But at the same time the government under President Paul Kagame has been widely criticised for its authoritarian tactics and use of violence against those who oppose it.
Rwanda stands out for many good things. It has the highest number of women in politics anywhere in the world. More than half the members of Parliament in the country’s lower house are female.
Rwanda also has an impressive technology track record. The country is known for the innovative use of technology to deliver essential services like blood. It also has extensive internet infrastructure, which covers over 95% of the country. And of course, Rwanda also continues to record impressive economic growth.