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Rwanda’s economy remained resilient in the 2022-2023 fiscal year despite the global economic slowdown, the National Bank of Rwanda said in its latest report.

The central bank’s report for 2022-2023, presented to parliament Monday in the Rwandan capital of Kigali, said that the economic resilience primarily stemmed from a robust performance in the services sector.

“Despite facing various economic challenges such as a global demand slowdown, rising inflation and climate shocks, Rwanda’s economy remained resilient, with real GDP growing by 8.1 percent during 2022-2023, slightly lower than the 8.9 percent achieved in the previous year,” the report said.

It noted that Rwanda’s external trade continued its recovery path, witnessing a 29.8 percent increase in merchandise exports. This growth was attributed to the strong performance of domestic manufacturing exports and traditional commodities.

The financial year 2022-23 posed challenges for Rwandans due to high and persistent inflationary pressures and weather-related issues, which adversely affected the country’s agricultural production, read the report.

“These combined challenges increased inflation from 4.6 percent in fiscal year 2021-2022 to 18.2 percent in fiscal year 2022-2023,” it noted.

Furthermore, the report indicated that the country’s financial sector maintained sufficient capital and liquidity, with regulated institutions consistently holding capital above the required levels. Banks sustained an aggregate total capital adequacy ratio of 21.1 percent as of June 2023, surpassing the regulatory minimum of 15 percent, according to the report.

The report, however, said that Rwanda’s total trade deficit increased 29.7 percent, creating additional pressure on the local currency. — Xinhua