Economists have predicted tough times ahead with a further weakening of the Uganda shilling

By Samuel Ssebuliba

Economists have predicted tough times ahead with a further weakening of the Uganda shilling this year in response to global sentiments.

According to Jibran Qureishi Stanbic Bank’s Chief Economist for East Africa, the shilling is expected to trade between 3,850 and 3,900 against the US Dollar at the end of the year.

Speaking at the Stanbic Economic Outlook Breakfast meeting in Kampala, Qureishi also predicted a rise in headline inflation to about 8% in May 2017 as a result of reduced food production due to prolonged drought.

He however, quickly adds that all is not gloom and doom if government invests in irrigation, boosts domestic savings and tackles tax evasion to support the country’s development agenda.

The meeting was running under the theme: “Stimulating Economic Growth Advancing Opportunities for Financial Inclusion”