Minister Kasaija Declares Uganda’s Economy Fully Recovered from External Shocks

Minister of Finance, Planning and Economic Development Matia Kasaija has said that Uganda’s economy has recovered from internal and external shocks.

The minister made this revelation while reading the 2024/2025 national budget at Kololo Independence Grounds on Thursday evening.

“I am pleased to report that Uganda’s economy has fully recovered from various internal and external shocks that impacted performance in the past four years,” said Minister Kasaija.

Minister Kasaija cited the projection of Uganda’s GDP growth by 6 percent for the financial year 2023/24 as a positive indicator of the economy’s recovery. This is a boost from 5.3% in 2022/2023.

Additionally, Uganda seems to be on the incline in comparison to Sub-Saharan Africa’s average of 3.8 percent, and the global average of 2.9 percent projected for the year 2024.

Hon Kasaija also noted that this has contributed to the growth of the size of the economy.

“As a result of this robust growth, the size of the economy is now estimated at Shs 202 trillion (USD 53.3 billion) up from Shs 184.3 trillion (USD 48.8 billion) in nominal terms,” said Minister Kasaija.

Highest growing sectors

The minister credited growth in sectors such as services, agriculture, and industry for the bump. These are estimated to grow at 6.6 percent, 5.1 percent, and 5.8 percent, respectively, in FY2023/24.

The growth in the services sector has been credited to a strong recovery in retail and wholesale trade. These are boosted by growth in tourism, communication, and real estate activities.

Similar trends in manufacturing, construction, and mining have contributed to the exceptional performance of the industry sector.

Meanwhile, the agriculture sector has benefited from increased production of food, cash crops, and livestock.

Additionally, the streamlined implementation of the Parish Development Model (PDM) has contributed to a 5.1% expansion of the agriculture sector.

Similarly, low inflation and a relatively stable exchange rate have supported this economic recovery. These have allowed good investment planning and supported export competitiveness.