Kampala, Uganda – The Bank of Uganda (BoU) has released a report indicating that the Ugandan economy has demonstrated remarkable resilience despite facing significant global economic headwinds. The report projects that Uganda’s economy will grow between 5.5% and 6% in the 2023/2024 financial year, showcasing a positive outlook amidst a global economic slowdown.
Key factors contributing to this resilience include strong domestic demand, increased private sector investment, and the government’s ongoing focus on infrastructure development. These elements have helped sustain economic growth despite external pressures.
However, the report also highlights concerns regarding inflation, which stood at 10.4% as of December 2023. In response, the BoU has implemented monetary policy measures, including raising the Central Bank Rate, to address high inflation levels and ensure macroeconomic stability.
While the report underscores positive economic indicators, it also acknowledges ongoing challenges such as the lingering effects of the COVID-19 pandemic, global supply chain disruptions, and geopolitical tensions stemming from the Russia-Ukraine conflict. The findings emphasize the importance of continued vigilance and policy responses to navigate these challenges effectively.