IMF confirms in a statement that Uganda’s economic growth to gain momentum in a recent forecast, while the progress on social indicators is still mixed and poverty reduction has stalled.
The economy expanded by 6.1 percent in FY17/18, supported by improvements in the services sector and a pick-up in the agriculture sector.
The supportive monetary policy and strong business conditions and sentiment have given a great rise to the private sector.
Growth is projected at 6.3 percent in FY18/19, as manufacturing, construction, and services continue to expand, International Monetary Fund –IMF confirmed.
This gives a reflection with what the Finance Minister – Matia Kasayijja told the nation that the economy is on a continuous inclination.
According to African News, Uganda’s Finance Ministry says the country’s debt stands at 41 percent of its gross domestic product (GDP), while Its Central bank however said its public indebtedness has already topped 50 percent of its economic output.
Uganda’s revenue collection improved by 0.3 percent of GDP, less than the government’s objective of raising tax revenues by half percent of GDP each year. Infrastructure spending increased by over 1 percent of GDP. Current spending exceeded the budget, triggering additional domestic borrowing. Still, the deficit was largely financed externally. Public debt went up by 3 percentage points to 41 percent of GDP.
IMF says, Uganda’s key challenge is to ensure that economic policies translate into inclusive growth and jobs. Uganda needs to create more than 600,000 jobs a year to accommodate its growing population. Raising productivity in agriculture would contribute to rising incomes and facilitate an employment shift towards other growing sectors, including light manufacturing and services.
Uganda anticipates starting pumping crude oil by 2022 at the latest from fields in western areas near the border with DR Congo; we hope it will positively contribute to country’s GDP through social and economic factor.
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