Through the Financial Year 2013/14 (FY14), Uganda’s economy continued to grow albeit modestly at an estimated 5.7% less than target of 6.2%. The outturn depicts a steady growth given the trend from 3.4% in FY12. Despite not meeting target, the economy turned out better than average growth of 5.3% in the sub-Saharan non-oil producing economies. The growth is, however, far below the medium term target of 7% necessary to achieve socioeconomic transformation.
Global economic hardships, especially slow recovery in export demand in Europe, continued to challenge Uganda’s development efforts during the year. The on-going political unrest in South Sudan, one of Uganda's major trading partners, which has lasted for more than half of the budget period did not only threaten national security but adversely affected revenue streams and remittances. Proposed changes in certain legal aspects made the situation worse, with some development partners withholding funding budgeted for during the year.
Real GDP growth is estimated at 6.1% in FY15. Cash crop production, agro-processing, manufacturing, mining, increased electricity production, transport and communication are expected to be the main drivers of growth in FY15.
Senior Associate, PwC Uganda
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