Rwanda's 2016 economic growth will slow pegged down by volatile franc, sluggish mineral exports and slow budget implementation.

The World Bank Thursday put this year's growth at 6.8 per cent lower than previous 7.1 per cent recorded in 2015.

Data from National Bank of Rwanda shows that the country’s mineral exports have fallen both in value and volume dragged down by a drop in global mineral prices. As a result, Rwanda’s trade deficit widened in the year ending 2015.

The formal export value decreased to $558.8 million from $599.8 million.

The economy also suffered from depreciating currency due to the strengthening of the US dollar drastically impacting Rwanda's international reserves.

“Despite the steady growth and macroeconomic stability in 2015, downside risks have been increasing, both externally and domestically,” said Yoichiro Ishihara, World Bank's senior economist for Rwanda.

The Bank says delayed execution of the budget and inadequate financing for development, on the domestic front, are also likely to slow down the economy.

Job creation

The World Bank tipped Rwanda to focus on increasing agricultural productivity to create jobs and boost incomes for the rural poor.

“Given that 70 per cent of the workforce remains employed in agriculture, increasing earnings from agriculture remains the most direct way to improve economic conditions for the bulk of the population,” said Tom Bundervoet, the Bank's senior poverty economist for Rwanda.