The International Monetary Fund Resident Representative, Ms Izabela Karpowicz, stated, “Inflation peaked in late 2022 but it’s now on a declining path. As it continues to decline and global uncertainties decrease, external demand would support a stronger recovery in 2024 and beyond, thus a return to pre-Covid-19 growth rate of 6 to 7%.”
The International Monetary Fund expects Uganda’s economy to grow by 5.5% this year, following a good half-year performance and some encouraging data from high-frequency activity and confidence indicators.
“Uganda is not spared from this. Yields on government securities peaked at 12-15 percent early in 2023 and the Uganda shilling has depreciated. Difficulty in raising concessional financing, coupled with a higher interest burden, means that fewer resources are available for discretionary spending, notably on development and climate change adaptation,” Ms. Karpowicz said.
