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Uganda’s economy is set to shoot up by 5% in 2023 but still faces devastating threats according to the World Bank

With the exception of the subtleties the bank warned about, the recent World Bank assessment on the Ugandan economy is encouraging.

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The analysis projects that Uganda’s GDP would expand by 5.5% during the 2022–2023 fiscal year, up from 4.7% the year before.

The figures were published in the 20th edition of the Uganda Economic Update by the World Bank, which described how the economy of Uganda recovered from the Covid-19 pandemic.

On December 15th, 2022, the 20th edition of the Uganda Economic Update was published in Kampala.

The survey also revealed that Uganda’s economy is projected to expand by as much as 6% in 2024, highlighting its resilience in the face of a turbulent global economy.

Uganda’s economy suffered greatly during the epidemic since the lockdown procedures reduced economic growth in 2021 by 50%.

The nation’s economic recovery accelerated in 2022 as a result of the industries of services and manufacturing performing well, private consumption growing, and private investment rising.

The bank predicts that in the upcoming years, infrastructure development and significant investment in oil production would accelerate the expansion of the economy in the country of east Africa.

“Accelerated growth may reduce the poverty rate marginally to 41.9 percent by 2024, though this will depend on how conditions evolve,” the World Bank report said in part.

The World Bank’s country manager, Ms. Mukami Kariuki, commented on the forecast, saying that “now, the Ugandan economy will need to grow even more rapidly, sustainably, and broadly to generate enough jobs for one of the fastest growing populations in the world, accelerate growth in incomes, and lift its population out of poverty. One strategy is to increase both domestic and international trade.

The research also issued a warning about the Covid-19 pandemic’s reappearance. Along with health-related difficulties, another concern is amassing more external debt. The Ugandan government is currently able to cover its obligations, so this is not an issue. However, Uganda must be especially careful not to go over its current borrowing limit right now.

According to the research, “the government’s budgetary plan should streamline expenditures to make room for priority spending while continuing to shift expenditures away from investment in hard infrastructure and towards human capital.”

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