Uganda - About the 8th economic update

In financial year 2016-2017, the Ugandan economy has grown at a much slower pace than in the past. Growth declined by 0.2 percent in the first quarter of 2016-2017, and overall growth for the year is expected to be lower than the originally projected growth rate of 5.8 percent. The decline also contrasts the positive growth rate of 0.6 percent recorded in the previous quarter, indicating a reversal of the recovery that had begun to become apparent after the completion of the election cycle in February 2016. Due to the prolonged drought conditions, agriculture declined by 1.1 percent during the first quarter. Services, which in the past have been the main driver of growth, also stagnated. With manufacturing and trading activities declining strongly due to disruptions to the main market in South Sudan, the growth of industry was mainly driven by the expansion of construction activities, which was largely driven by government projects. On the upside, the government has kept inflation in single digit levels in spite of the national elections held early 2016. This is a sharp contrast to what transpired in the previous election cycle in 2011. This eighth edition of Uganda's economic update covers the period of 2016-2017.