Uganda’s economy has remained resilient- Kasaija

“This year’s performance compares favorably with the average growth rate for Sub-Saharan Africa estimated at 3.6 percent for calendar year 2023. The size of the economy is estimated at Shs184.3 Trillion, compared to Shs. 162.9 Trillion last year. This is equivalent to US$ 49.4 billion compared to US$ 45.6 billion last year,” Mr Kasaija said during 2023/2024 national budget reading at Kololo ceremonial grounds in Kampala.

According to him, the economy’s expansion is on account of good performance of the services sector which grew at 6.2 percent, compared to 4.1 percent in the previous year. 
“Agriculture has also performed strongly growing by 5.0 percent, despite the dry spell in the first quarter of the financial year. In particular, food crops, livestock and fishing performed well. Industry grew at 3.9 percent, driven largely by manufacturing and construction activities, especially in the oil and gas industry,” he added.

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Inflation, according to Mr Kasaija, is reducing steadily on account of well-coordinated fiscal and monetary policy. 
“Inflation has significantly decreased since October 2022 when it peaked at 10.7 percent. Last month, the pace at which prices were rising slowed down to 6.2perecnt. Prices of key items such as soap, sugar, fuel at pumps, among others, have significantly reduced,” he argued.

With respect to the cost of money, commercial bank lending interest rates have increased slightly to 19.3 percent in April 2023 from 18.8 percent in April 2022, according to the minister.
“This was mainly caused by the increase in the Central Bank Rate to 10% since October 2022, in order to fight inflation,” he said.
 

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