Uganda’s economy seems to be on a recovery path

Uganda's economy continues to post positive indicators

Uganda economy has continued to show positive indicators in the economic activity, this is revealed by the monthly performance of economy report for the month of January.

High frequency indicators of economic activity remained positive. The Composite Index of Economic Activity (CIEA) improved by 0.62 percent to 210.34 in December 2017 from 209.04 in November 2017, indicating a rise in the level of economic activity.

This rise was partly explained by increased exports earnings, imports and growth in credit extension to the private sector which stimulated production, consumption and consequently translated to increase economic activities.

The BTI remained above the threshold of 50 despite declining to 57.8 in January 2018 from 58.8 in December 2017, which is an indication of positive sentiments on doing business.

In the real sector, the downward trend in annual inflation continued during the month. Annual headline inflation declined to 3 percent from 3.3 percent recorded in December 2017. The drop was largely attributed to a slow-down in the pace of increase in general prices of energy, fuel, utilities and for goods and services in the core basket.
High frequency indicators of economic activity remained positive. This gives an indication of an increasing level of economic activity and positive sentiments on doing business going forward by the private sector.

In the financial sector, the gradual recovery in credit extension to the private sector continued during December 2017, supported by easing monetary policy.

Private sector grew by 2 percent during the month to Shs 12,825 billion, as compared to a growth of 0.1 percent the month before.

Stay in the Know!

Sign up for the latest news and information on African Companies and Economy.

By signing up, you agree to receive MoneyInAfrica offers, promotions and other commercial messages. You may unsubscribe at any time.

Leave a Reply