Uganda’s economy is likely to grow below earlier government projections.
While releasing the April Monetary Policy Statement, the Governor Bank of Uganda Prof. Tumusime Mutebile said the 2016-2017 growth rates will be way below the projected 4.5%.
He attributes this to the contraction in growth in the agriculture sector by 2% in four consecutive quarters, yet it contributes 22% to the National Gross Domestic Product.
He however expresses hope that in the near future, the economy will recover, if effects of calamities like drought are addresses.
The Bank of Uganda has consequently reduced Central Bank Rate by 0.5% to 11% this month to encounter core inflation rate which stands at 4.8%.