The 2022/2023 fiscal year begins with stronger growth but some pressures, inflation and currency depreciation notably, threaten that growth. 

Uganda's economy grew by 7.5% in the first quarter of the current fiscal year (2022/2023), according to the monthly economic performance report published by the Ministry of Finance last Tuesday.

The growth is up by 4.8 points compared with the rate recorded during the same period in the previous fiscal year. It is due to the growth in the industrial and service sectors. Exports reached more than $371.8 million in December 2022, 10.7% more than the figures recorded in November. Meanwhile, imports increased by 4.9% between November and December 2022, exceeding $666.7 million.

"Business conditions in January 2023 improved as measured by the headline Purchasing Managers’ Index (PMI) which increased by 2.3% to 53.2 in January 2023 from 52.0 in December 2022. This was mainly driven by stronger consumer demand, also pointing towards an improvement in economic activity," the report indicates.

There was a slight decline in the business tendency index, we learn. The report shows that the index declined by almost 0.3 points to 51.64 in January 2023, from 51.91 in December 2022. Annual headline inflation also increased by 0.2 points to 10.4 percent in January 2023, due to transportation costs, higher prices for some construction materials, and some manufactured foods.

Jean-Marc Gogbeu