Economic activity in Uganda is expected to accelerate this financial year 2017/18 with the economy projected to grow between 5.0% and 5.5%Kathryn
Uganda’s economic outlook for 2018 is a lot more positive thanks to a recovery in private sector credit, favorable weather conditions, increase in Foreign Direct Investment (FDI) and the continued robust government investment in infrastructure.
According to Bank of Uganda’s most recent Monetary Policy Statement (MPC), there are very good signs of recovery and revival of the private investment activity in the economy. FDI has rebound from the slump of 2016, and is estimated to have increased by 18.5% during the 2017 calendar year. There has been a year on year increase in private sector credit, with local currency credit extension up by 10.8% in December 2017 compared to the modest
growth of only 7.9% in December 20161.
The manufacturing sector is also showing signs of recovery with an increase in the export of manufactured goods particularly construction materials such as iron and steel products. Export of processed consumer goods and agricultural items such as dairy products and edible oil is also on the rise. In addition to this, there has been an
increase in imports of raw materials and capital goods, registering growth of 17.4% in the calendar year 2017
compared to a decline of 21.1% in 2016.
All these positive developments, together with the continued improvements in the global economic outlook, indicate that 2018 will definitely be a better year for businesses in Uganda.