Uganda’s finance minister announced that the country’s economy is expected to grow by 6.5% in the financial year 2024/25. This represents a slight acceleration from the projected growth for the current year.
- The anticipated growth will be driven by the industrial, services, and agriculture sectors, which are deemed to be key contributors to Uganda’s economic expansion.
- In the financial year 2023/24, which ends in June 2024, the government forecasts a growth rate of 6% for the Ugandan economy.
- Uganda has experienced a decline in its public debt as a percentage of gross domestic product (GDP). The debt-to-GDP ratio decreased to 47% at the end of June, compared to 48.4% the previous year, reflecting progress in fiscal consolidation efforts.
- As of June, the country’s total public debt stood at 86.8 trillion Ugandan shillings ($23.33 billion), indicating an increase from the previous year. However, the growth of the economy has led to a decrease in the debt-to-GDP ratio.
- The World Bank recently halted new lending to Uganda as a form of protest against the passage of a stringent anti-gay law. This has posed challenges for Uganda in accessing affordable credit.
- The finance ministry projects that Uganda’s economy will reach a size of approximately $63.36 billion in the financial year 2024/25.