(Ecofin Agency) - Rwanda's real GDP grew by 9.7% in Q1 2024, surpassing the 8.2% average growth rate recorded in 2023. The World Bank announced this data in a September 17, 2024 report.

The strong growth was mainly fueled by increased household consumption and increased investments. According to the report, the growth came despite a slowdown in the global economy. The World Bank revealed that robust household spending, reflecting improvements in the labor market, along with significant investments, were the key drivers of Rwanda's economic growth early in 2024.

Inflation, which had peaked at over 21% in 2023, has since eased due to tighter monetary policies and a drop in food prices. By August 2024, the inflation rate had fallen to 5% year-over-year, within the target range of the National Bank of Rwanda.

Titled "Accelerating Skills Development to Foster Private Sector Growth in Rwanda," the report highlighted a strong recovery in the labor market, with over 500,000 new jobs created in the fourth quarter of 2023. This marks the largest reduction in unemployment since the end of 2019.

"The labor market expansion in Rwanda was broad-based, with women benefiting slightly more than men. To leverage its youth demographic, Rwanda needs to expand labor force participation, as only 2.8 million out of 8.1 million working age individuals are employed full time," said Calvin Djiofack Zebaze, lead economist for the World Bank in Rwanda.

The report also stressed that skills development is essential to boost private sector growth. It emphasized the need for greater public investment in education, particularly in technical and vocational training, as well as higher education, to better match degrees with labor market needs.