Uganda economy seen expanding 5.8pc

Uganda’s economy will expand by 5.8 per cent this year from an estimated 5.3 per cent last year, boosted by public investments, the International Monetary Fund said.

The government is at various stages of implementing several multi-billion dollar infrastructure projects, including hydropower dams, a refinery, express highways and a railway line. Treasury estimates economic growth of 5.3 per cent in the 2014/15 fiscal year from 4.5 per cent in the previous year.

The IMF said the growth would be fuelled “by scaled-up public investment and a recovery of private consumption supported by stronger credit growth.”

Relatively low inflation, healthy foreign exchange reserves of above four months of import cover, and low government debt are also providing the Ugandan economy with a strong cushion against external shocks, the IMF said.