Uganda’s economy is set to expand by 5% in 2023 but still faces devastating threats, according to the World Bank

According to the report, Uganda’s economy is projected to grow by 5.5% in fiscal 2022/2023, up from 4.7% in the previous fiscal year.

The estimates were published in the 20th edition of the World Bank’s Uganda Economic Update, which detailed the Ugandan economy in a bid to recover from the Covid-19 pandemic.

The 20th edition of the Uganda Economic Update was published in Kampala on December 15, 2022.

The report also revealed that the Ugandan economy is expected to grow by up to 6% in 2024, demonstrating the strength of the economy at a time of global economic turmoil.

During the pandemic, Uganda’s economy took a major hit as lockdown protocols cut economic growth in half in 2021.

The country’s economic recovery accelerated in 2022 on the back of a strong performance in the service and industrial sectors, accelerating private consumption and a surge in private investment.

The bank assumes that the growth of the East African country’s economy will be accelerated in the coming years by the construction of infrastructure and high investments in oil production.

The World Bank report reads in part, “Accelerating growth can easily bring the poverty rate down to 41.9 percent by 2024, although this will depend on how circumstances evolve.”

Ms Mukami Kariuki, World Bank country manager, commented on the World Bank’s forecast “To provide enough jobs for one of the fastest growing populations in the world, accelerate income growth and lift the population out of poverty, the Ugandan economy needs to grow even faster, more sustainably and broadly now. Strengthening regional trade and international trade is one of the ways.”

The report also warned of the resurgence of the Covid-19 pandemic. Aside from health problems, there is also the problem of taking on more foreign debt. This is not a problem for the Ugandan government at the moment as it is still able to service its debt, but now more than ever Uganda needs to be careful not to exceed its current capacities.

“The government’s budgetary strategy should streamline spending to allow adequate headroom for priority spending, while continuing to reallocate spending away from hard infrastructure and toward human capital investments.” the report indicates that.

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