- The latest projection for the country’s economic growth is in the range of 2.5 to 3.0 percent for 2022.
The Central Bank of Uganda has lowered Uganda’s economic growth projection. The latest projection for the country’s economic growth is in the range of 2.5 to 3.0 percent for 2022. Earlier, in the special monetary policy meeting of the Bank of Uganda (BOU) of July 5, the Monetary Policy Committee had projected economic growth of 4.5 percent to 5.0 percent in 2022 and 5.0 percent to 5.5 percent in 2023.
Disclosing the revised projection, Dr Michael Atingi-Ego, the Central Bank deputy governor, said that economic growth prospects have been dimmed due to factors like high cost of production, risks of global recession, and weak consumer and business sentiments. Rising inflation and commodity prices continue to erode households and business incomes along with tight financial conditions. The Uganda Bureau of Statistics (Ubos) recently disclosed that annual headline and core inflation rose to 7.9 percent and 6.3 percent in July from 6.8 percent and 5.5 percent in June. According to official data, annual food crop inflation rose from 14.5 percent in June to 16.4 percent in July while Energy Fuel and Utilities (EFU) inflation rose from 14.2 percent to 17.2 percent in the same period.
The Bank of Uganda for a third time hiked its policy rate by 50 basis points (0.5 percent) from 8.5 percent to nine percent. An accommodative monetary was in place over the years to revamp Uganda’s high economic growth that had been weakened by the pandemic.
Also read;
https://trendsnafrica.com/ugandan-shilling-on-free-fall/
https://trendsnafrica.com/ugandas-gold-ore-deposits-estimated-at-31-million-tonnes/
