BoU Explains Economic Slowdown

1920 Views Kampala, Uganda

In short
The Bank of Uganda says although the economy is estimated to grow at 4.5 percent this financial year, the outlook suggests growth will pick in financial year 2017/18 to 5.5 percent and keep going up.

The Bank of Uganda (BoU) says although the economy is estimated to grow at 4.5 percent this financial year, the outlook suggests growth will pick in financial year 2017/18 to 5.5 percent and keep going up.
 
In December 2016, the BoU had projected that growth would be 5.0 percent, but that is not possible now due to a subdued economic environment.
 
Governor Emmanuel Tumusiime-Mutebile says revising the GDP growth is mainly due to effects of the prolonged drought, adding that growth will pick up as inflation also peters out.
 
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The Deputy Governor, Louis Kasekende, says the onset of rain should lead to a pickup in economic growth.
 
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According to Kasekende, while GDP growth has been revised downwards, it will go up in the coming financial year.
 
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In financial year 2015/16 economic growth was projected at 5.5 percent only to be revised downwards, first to 4.8 percent and eventually to 4.6 percent.
 
Although the 4.5 percent is way above the Sub-Saharan average of 1.4, it is below Ugandan peers in the East African Community.
 
The World Bank in its 8th Edition of the Uganda Economic Update says if Uganda is to achieve lower middle income status by 2020 the economy needs to grow at 12 percent annually.
 
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Mentioned: bank of uganda

About the author

David Rupiny
In his own words, David Rupiny says, "I am literally a self-trained journalist with over 12 years of experience. Add the formative, student days then I can trace my journalism roots to 1988 when as a fresher in Ordinary Level I used to report for The Giraffe News at St Aloysius College Nyapea in northern Uganda.


In addition to URN for which I have worked for five years now, I have had stints at Radio Paidha, Radio Pacis, Nile FM and KFM. I have also contributed stories for The Crusader, The New Vision and The Monitor. I have also been a contributor for international news organisations like the BBC and Institute for War and Peace Reporting. I am also a local stringer for Radio Netherlands Worldwide.


I am also a media entrepreneur. I founded The West Niler newspaper and now runs Rainbow Media Corporation (Rainbow Radio 88.2 FM in Nebbi). My areas of interest are conflict and peacebuilding, business, climate change, health and children and young people, among others."