The projected growth is however slightly lower than the earlier projections on account of the unfavourable weather conditions with drought affecting both food and livestock production. The regional instability especially in South Sudan affected trade as the war hampered smooth flow of goods and services.
The IMF projects that Uganda’s GDP will grow by 5.7% and 6.1% in 2014 and 2015 respectively mainly supported by the public investment despite a slowdown in agriculture and unrest in South Sudan. International reserves are expected to remain ample at a level equivalent to 4.0 to 4.2 months of imports, providing a good buffer against shocks to the Ugandan economy. The external current account deficit is anticipated to widen next year, but would be fully financed by foreign loans, foreign direct investments, and some use of international reserves. Mediumterm growth prospects are strong, helped by integration of the East African Community, infrastructure development, and oil production...Read more