Latest GDP figures show Uganda in rapid recovery

April 3, 2018 in Business, Land & Agriculture, Trade & Industry by Editor

April 3, 2018—Uganda’s Gross Domestic Product (GDP) figures for the last months of 2017 are much better than those recorded during a similar period in 2016 meaning the economy is recovering fast from the doldrums of two years ago.

According to Ben Paul Mungyereza, the UBOS executive director, year-on-year quarterly GDP growth stood at 6.6 percent in the second quarter (Q2) of 2017/18 compared to the growth of 2.8 percent in Q2 of 2016/17.  Q2 is the period between October and December during a financial year.

In a statement, Mungyereza said in value terms, the economy expanded from UGX14,264 billion (about $3.8 billion) in Q2 2016/17 to UGX15,206 billion (just over $4 billion) in Q2 2017/18.

Value-added in agriculture sector is estimated to have increased by 3.5 percent in Q2 of 2017/18 from a decline of 1.9 percent in the Q2 of 2016/17. This was mainly due to an increase in food crop growing activities that grew at 7.1 percent in Q2 2017/18 as a result of favourable weather patterns.

Value-added in industry sector grew by 7.3 percent in Q2 of 2017/18 compared to a growth of 4.3 percent in Q2 of 2016/17. The better performance of Q2 2017/18 compared to Q2 2016/17 was mainly driven by the increase in crude oil mining/exploration activities and manufacture of drinks and tobacco.

The services sector value-added grew by 8.9 percent in Q2 of 2017/18 compared to an earlier growth of 3.9 percent in Q2 of 2016/17. Better performance of Q2 2017/18 compared to Q2 2016/17 was as a result of the good performance of financial and insurance activities that grew by 12.5%.