(3 minutes read)
· Uganda’s economic growth is dithering. The forecast has
been reviewed downwards to the range between 5.2% and 5.7% in 2019-20
as against the earlier forecast of 6%.
· There will be an additional shortfall of US$21.5 million in
the last four months of the year, which will further widen in the
next financial year.
Uganda’s economic growth is dithering. The forecast has been
reviewed downwards to the range between 5.2% and 5.7% in 2019-20 as
against the earlier forecast of 6%. The review has taken into
consideration the severity of the impact coronavirus pandemic, say
sources in the Ugandan finance ministry. Notwithstanding the fact that
Uganda, by far has reported only one case of coronavirus, it is
expected that the global travel advisories will adversely impact
tourism, trade and industry, banking, remittances and foreign direct
investment inflows, according to Uganda’s finance minister Matia
Kasaija.
The minister said that exports are estimated to decline in the last
four months of the financial year. The decline in imports was pegged
at 44% in the period. The minister said that the main reason for trade
compression was disruptions in supply chain on account of the
coronavirus and the situation might continue, if not escalate till the
time the virus is contained at the global level.
The minister also indicated about shortfall in revenue collections.
There will be an additional shortfall of US$21.5 million in the last
four months of the year, which will further widen in the next
financial year. The minister expressed the hope that it’s main
exports-coffee-would not be affected by the ongoing scare emanating
from the spread of coronavirus.
The government already faces a deficit of US$100 million this fiscal
year and US$90 million in 2020-21 on account of the revenue
shortfalls. Additional expenditure on account of healthcare
necessitated by the virus, coupled with heavy losses in agriculture
due to locust invasion has upped the expenditure of the government.
