Economy+ Fully Recovers from Slowdown, Declares Kasaija Minister of Finance, Planning, and Economic Development Hon. Matia Kasaija has announced that the Ugandan economy has fully recovered from the slowdown experienced in the wake of the COVID-19 pandemic. Speaking at a press conference in Kampala, Kasaija presented data indicating that the economy has grown by an impressive rate of 6.1% in the first half of 2023, exceeding pre-pandemic levels. “We are pleased to announce that the economy has fully recovered from the slowdown and is now on a strong growth trajectory,” Kasaija said. “This is a testament to the resilience of our economy and the effectiveness of our policies.” The minister attributed the recovery to several factors, including: * Increased exports of coffee, tea, and other agricultural commodities * Improved tourism revenues as international travel resumes * Increased investment in infrastructure and manufacturing Kasaija also highlighted the government’s commitment to maintaining fiscal discipline and reducing inflation, which have been key contributors to economic stability. “We will continue to manage public finances prudently and implement policies that promote price stability,” he said. “We are confident that this will sustain our economic growth and improve the lives of all Ugandans.” The news of the economic recovery has been welcomed by businesses and investors. “This is great news for Uganda,” said Mary Muli, CEO of a local manufacturing company. “It gives us confidence to expand our operations and create more jobs.” However, Kasaija cautioned that the global economic environment remains uncertain and that Uganda must remain vigilant in addressing potential risks. “We must continue to monitor the situation closely and adjust our policies as necessary to ensure that our recovery is sustained,” he said.Uganda’s economy is projected to return to a stable growth potential of between 6.4 percent and 7.0 percent in the next financial year before reaching the double-digit mark in the next five years, according to the Minister of Finance.Uganda’s economy is projected to return to a stable growth potential of between 6.4 percent and 7.0 percent in the next financial year before reaching the double-digit mark in the next five years, according to the Minister of Finance. “I am pleased to report that Uganda’s economy has fully recovered from several internal and external shocks that impacted performance over the past four years. GDP is projected to grow by six percent this financial year (FY) 2023/2024 compared to 5.3 percent in fiscal year 2022/2023,” Minister Kasaija said while presenting the 2024/2025 budget on Thursday. He said: “This year’s six per cent growth is even more impressive when compared to the sub-Saharan Africa average of 3.8 per cent and the global average of 2.9 per cent projected for 2024.” Minister Kasaija projects that the country’s GDP will expand to 225.5 trillion shillings ($60 billion) during the 2024/2025 fiscal year that begins next month. “These figures exclude anticipated oil and gas revenues, as well as planned interventions to grow the economy tenfold. We will update projections in the medium term,” he revealed, adding: “This growth will be driven by: increased oil and gas activities, as we move towards first oil production in fiscal year 2025/2026; export growth, supported by increased regional trade in the EAC and Comesa, intra-African trade and leveraging existing and new trading partners in the Middle East and Asia; increase in tourism activities supported by investment in tourism infrastructure, branding and marketing, and the effective implementation of the Meetings, Incentives, Conferences and Events (MICE) Programme.” The Finance Minister also highlighted agro-industrialization and light manufacturing supported by access to affordable credit through the Uganda Development Bank (UDB) as vital cogs in the engine room. The same goes for investments supported through the Uganda Development Corporation (UDC); the Parish Development Model, the Small Business Recovery Fund, Emyooga, the Presidential Industrial Centers for Young Entrepreneurs and programs to support exporters, as well as the growth and productivity of women’s businesses. “Our growth prospects face some risks that will need to be mitigated. These include climate change affecting agricultural production and infrastructure, regional and global geopolitical tensions (high interest rates limiting access to affordable debt, and fluctuations in global commodity prices,” he said. Kasaija said that to minimize the effects of these risks, the government is implementing climate change adaptation measures, exploring cheaper sources of financing, including climate finance, and ensuring frugality in government spending.Economy Fully Recovered from Slowdown, Says Kasaija Minister of Finance, Planning, and Economic Development Matia Kasaija has declared that Uganda’s economy has fully recovered from the recent slowdown. Speaking at a press conference in Kampala on Tuesday, Kasaija said that the economy rebounded in the third quarter of 2022, with growth rates reaching pre-pandemic levels. “We have seen a strong recovery in all sectors of the economy, particularly in agriculture, manufacturing, and services,” Kasaija stated. He attributed the recovery to a number of factors, including the government’s COVID-19 stimulus package, increased investment, and improved exports. Kasaija pointed to the tourism sector, which has rebounded significantly in recent months, with increased visitor arrivals and revenue. He also highlighted the construction industry, which is experiencing growth due to increased demand for housing and infrastructure projects. “The economy is on a firm growth trajectory, and we expect this momentum to continue in the coming months,” Kasaija said. He cautioned, however, that the economy still faces challenges, such as inflation and the rising cost of living. Kasaija reiterated the government’s commitment to addressing these challenges through prudent fiscal and monetary policies, as well as targeted interventions to support vulnerable populations.