Rwanda’s real GDP is projected to grow by 8.5 percent in 2019 and 8.1 percent in 2020, the country’s National bank said Friday.

The real GDP of the African country grew by 12.2 percent in the second quarter of 2019, rising from 8.4 percent in the first quarter, John Rwangombwa, governor of National Bank of Rwanda, told reporters following the bank’s quarterly gatherings of committees to discuss monetary policy and financial stability.

This is largely driven by strong performance in the industry, service and agriculture sectors, said Rwangombwa.

Rwanda’s economy remains solid due to a stable macroeconomic environment, ongoing public infrastructural investments and sustained business and consumer confidence, he said.

The governor also said in the first three quarters of 2019, imports recorded 14.6 percent growth against exports at 3.9 percent, which led to an increase in the trade deficit.

Growing imports are mainly due to increased demand for capital and intermediary goods needed for rising investments, he said.

Annual headline inflation is projected to rise from 1.4 percent in 2018 to 2.3 percent in 2019 and around 5.0 percent in 2020, he said.

By the end of December in 2019, the Rwandan franc is expected to depreciate by 4.8 percent, slightly lower than the initial projection of 5.1 percent at the beginning of this year, he added.

Rwangombwa said the committees decided to maintain the central bank rate at 5.0 percent to continue supporting the financing of the economy and growing aggregate demand.