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Economy To Grow At 6.5% In 2019/20 Financial Year

The Ugandan economy is projected to grow at a rate of 6.3% in the next financial year according to Bank of Uganda (BOU).

Also in the coming 2 to 5 years, the Central Bank says, real economic growth is forecast to be in the range of 6.5 to 7%.

This revealed during the bank’s monthly monitory policy statement press briefing.

According to Prof. Emmanuel Tumusiime Mutebile the Central Bank Governor, this will be precipitated largely by a turnover in private sector activity, foreign direct investment and extractive sector activities.

Preliminary estimates by the Uganda Bureau of Statistics indicate that the economy expanded by 6.1% in financial year 2018/19.

Growth was largely supported by growth in private sector credit, multiplier effects of public infrastructural investments and improved agricultural performance among other factors.

Externally, Mutebile says escalating global trade tensions could weaken Uganda’s external position and lead to volatility in domestic foreign exchange markets.

Uganda-Rwanda impasse.

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Although not listed as a threat, impediments to cross border trade have definitely affected Uganda’s economy.

Mutebile argues that these tensions have directly affected importers, exporters and consumers in the country.

Adam Mugume, the director of research at BOU argues however, that the effects have been is marginal bearing in mind that exports to other countries especially Democratic Republic of Congo (DRC) have picked.

Mugume is optimistic that once DRC fully stabilizes, there is likely to be an overturn in Ugandan exports.

One the saga that the Central Bank is currently embroiled in, Prof. Mutebile said he was only taken aback by 5 other consignments that came aboard a BOU chartered flight, but noted that he couldn’t elaborately comment on this matter.

“I didn’t say that I knew what the anomaly was about. I just said that it was an anomaly in the sense that the plane came with 20 pallets which we had asked to be put on the plane and additionally there were other 5 pallets. I dint know what these pallets were or to whom they were consigned, that is all”.

Meanwhile, the central bank has for June 2019 decided to maintain the Central Bank Rate at 10%.

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