Uganda’s economy has grown by 30 basis points in the first quarter of 2015/2016, this is according to the latest data from the country’s statistics office.
The marginal growth is as a result of a decline in the country’s agricultural sector. Agricultural output declined by 0.3 per cent compared to a revised growth of 3.3 per cent in the previous quarter.
‘‘The main contributors to this decline were Food Crops and Forestry growing activities. Cash crops growing activities, however, registered a 12.2 percent growth in Value Added during this quarter,’‘ Uganda Bureau of Statistics (UBOS) said in a press release.
The main contributors to this decline were Food Crops and Forestry growing activities. Cash crops growing activities, however, registered a 12.2 percent growth in Value Added during this quarter
On the contrary, the services sector is gauged to have grown by 1.4 per cent in the period under review. This is an increase of 0.8 per cent in comparison to the estimates of the fourth quarter of 2014/15.
‘‘The main drivers to the sector growth were Accommodation and Food services, Financial and Insurance, Information and communication as well as Public Administration services,’‘ said the statistics office.
The industry sector recorded a growth of 1.6 per cent. This has been attributed to growth in manufacturing, construction activities and electricity supply.
Nevertheless, the East African country’s monetary policy stance remains a hindrance to its growth. The country’s 2015/2016 growth forecast has already been revised downwards by the World Bank and the Bank of Uganda. The economic growth forecast has been projected at 5 per cent from a previous 5.8 per cent.
Meanwhile, the statistics office has delayed the release of this month’s inflation after carrying out a data rebasing exercise. The country is now using the 2009/2010 base year to calculate changes in Uganda’s consumer prices. January’s inflation will be released on February 1st.