Africa-Press – Uganda. Uganda’s economy is expected to grow at a rate of 6.4% by the end of the year, driven by key sectors such as manufacturing, agriculture, and services.
The Ministry of Finance, Planning, and Economic Development, through Secretary to Treasury Ramathan Ggoobi, shared these optimistic projections, highlighting factors such as increased foreign remittances and foreign direct investment (FDI) as key contributors to the country’s economic growth.
“The projected increase in foreign remittances and FDI provides a promising outlook for Uganda’s economy,” said Ggoobi. “These factors, along with strong performance in sectors like manufacturing and agriculture, are contributing to the overall growth.”
Despite global economic uncertainties, including the impacts of U.S. policies and the upcoming general elections, Ggoobi remains confident that Uganda’s economy will withstand these challenges.
“The economic turbulence we are witnessing globally, including factors like the Trump administration’s policies, is being closely monitored, but our technocrats at the Ministry of Finance are well-equipped to navigate through these turbulent times,” he added.
On inflation, Ggoobi noted a significant improvement, stating that the rate of price increases had slowed due to a reduction in food and transport costs.
“Inflation is expected to remain below 5%,” he said, pointing to a more stable economic environment.
Exports have also seen a notable rise, increasing by 12.1% in the second quarter of 2024, reaching USD 2.17 billion, while the import bill grew to USD 3.43 billion.
Additionally, Uganda’s foreign exchange has remained stable, with the shilling appreciating by 0.3% in March.
The Treasury reported that domestic revenue is on track to meet targets, and external financing remains manageable.
Uganda has borrowed Shs 27.3 trillion to finance the current fiscal year, with significant external support.
Ggoobi concluded, “Uganda is on an upward trajectory, and with strong revenue collections, oil revenues, and increased remittances, the economy is poised for continued growth.”
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