Minister: Uganda economy to expand to over US $29 billion

2019-05-15 18:50:47

The Ugandan Finance Ministry has said the size of the nation's economy will increase to Shs110.024 trillion (US $29.1635 billion) by the end of the 2018/19 financial year due to a pickup in economic activities.

Speaking at the launch of the National Budget Month for the 2019/20 financial year in Kampala yesterday, Dr. Gabriel Ajedra Aridru, the Finance state minister in charge of General Duties, said the economy has recovered from a two-year low, registering robust performance in the first half of the 2018/19 financial year.

"The economy is expected to grow faster than projected. As a result, GDP growth for the 2018/19 financial year has been revised to 6.3 percent from 6.0 percent," he said, indicating that the size of the economy will increase to Shs110 trillion in the 2018/19 financial year up from Shs100 trillion in 2017/18 financial year.

The main drivers of the growth, he said, include increased activities in the manufacturing sector, recovery in the construction sector, public sector investments in infrastructure and recovery in the agriculture and services sectors.

Other factors, he said, include growth in regional and international trade, tourism, ICT and financial services.

DR Ajedra also indicated that the 2019/20 budget will focus on interventions that will seek to increase GDP growth as well as ensuring that it is an all-inclusive budget.

Therefore, he said, government will focus more on enhancing agriculture production, agro-processing, and investment in physical and social infrastructure to reduce the cost of doing business, facilitate trade and exports, tourism as well as improving social service delivery.

Uganda's budget is financed mainly through domestic collections, domestic borrowing and external financing through budget support by development partners as well as borrowing on concessional and non-concessional basis.