Rwanda's economic growth slowed to 7.8% year-on-year in the first quarter of 2025, from 9.7% in the same period the previous year, the national statistics office announced on Friday. This downturn is largely due to a notable downturn in the service and agricultural sectors.

The service sector grew by 9% (compared to 11% in Q4), marking its weakest growth in six quarters, mainly due to strong downturns in wholesale and retail trade (14% against 23%) and in transport (4% against 8%).

At the same time, agricultural production grew by 2% (versus 3%), the slowest pace since the second quarter of 2023, mainly due to a drop in food crop production (-1% versus 2%).

On the other hand, industrial activity accelerated to 9% (compared to 7%), marking its fastest growth in three quarters.

This growth was supported by continued gains in manufacturing (7% versus 3%) and construction (13% versus 9%), while mining and quarrying production (-3% versus 5%) contracted, reversing previous growth.

On a quarterly basis, GDP fell by 1.0%, compared to an expansion of 4.1% in the fourth quarter of 2024.