The Permanent Secretary/Secretary to the Treasury (PSST), Ministry of Finance, Planning, and Economic Development, Ramathan Ggoobi, has attributed the resilience of Uganda’s economy and its continued growth to good economic management.
Ggoobi, who was speaking at a local TV station on Thursday morning, May 30, 2024, assured the country that the economy has fully recovered from the shocks that have affected the country since the COVID-19 pandemic.
He said Uganda has withstood several shocks, including high inflation and interest rates, Ebola, and the Russia-Ukraine war, and that the economy has continued to have a higher growth rate projected to be at 6% this financial year (2023–24).
“The size of the economy has expanded to about USD 53 billion, inflation is under control, export receipts have increased, more jobs have been created, and foreign direct investments have grown impressively,” Ggoobi said, adding that all this has happened because of good economic management.
The PSST also allayed fears over Uganda’s debt burden, saying that the fastest way to sustain debt is to make sure the economy grows, giving an example of countries like Japan that have debt bigger than their Gross Domestic Product (GDP).
“In Uganda, we are debating the debt being 40% of the GDP, but I want to assure you that fiscal consolidation is on. Those who are in charge of fiscal and monetary policy are coordinating to make sure that the debt doesn’t affect the economy,” he said.
According to the World Bank, economic growth in Uganda has accelerated slightly, supported by an oil-related construction boom and robust growth in agriculture, despite external shocks.
The World Bank also attributes Uganda’s economic stability and growth to the Bank of Uganda’s monetary policy, which has kept the inflation rate down.
