The Permanent Secretary and Secretary to the Treasury, Ramathan Ggoobi has said that Uganda’s economy has started to improve and is growing despite the Covid-19 Pandemic effects.
Ggoobi told Journalists during the release of Quarter Two expenditure for FY, 2021/22 that the economy grew by 3.4 percent during FY 2020/21 compared to the growth of 3.0 percent in FY 2019/20.
Ggoobi added that the country’s economy is expected to grow at 3.8 percent above the outturn of 3.4% registered in the financial year 2020\21.
He noted that with the easing of the Coronavirus lockdown, there has been a continued recovery of the economy.
The PS/ST, said that the performance in this financial year, so far indicates that the economy has continued on its recovery path following the partial reopening of the economy as sown by high frequency indicators of economic activity.
He revealed that the purchaser’s managers index (PMI) improved to 52.5 in September from 50.2 in August mainly on account of rising new orders and increased output by businesses as normal activity gradually resumed following the lockdown in July 2021.
“The Composite Index of Economic Activity (CIEA) also increased to 146.41 in August 2021 from 146.40 in July 2021,” Ggoobi said.
Ggoobi added, “in addition, despite economic challenges caused by the Covid-19 virus, macroeconomic stability has been maintained.”
He explained that inflation has also remained low and stable with headline and core inflation averaged at 2.3% and 3.1% respectively for the last 12 months, however, it (inflation) is expected to gradually rise through 2021 but is projected to remain below the 5 percent target.
Ggoobi noted that the exchange rate has remained relatively stable however the shilling has been appreciating, averaging 3530.6 US dollars in September due ro increased foreign exchange inflows.
“Going forward, government will continue to provide support to the private sector through interventions like the small business recovery fund to ensure continued recovery.” He said.
Ggoobi said that they will ensure ensuring the economy is open through vaccinating a sizable number of the population.
Quarter Two Expenditure Releases
The Finance Ministry also released a total of Shs. 5.81 trillion for Quarter Two expenditures, in addition to Shs. 5.6 trillion which was released in the First quarter, bringing the total funds released to-date to Shs. 12.17 trillion.
The 12.17 trillion released represents 53% of the approved Government of Uganda Budget excluding External Financing, Appropriation in Aid (AIA) and Public Debt.
According to the Permanent Secretary and Secretary to the Treasury (PS/ST), Ramathan Ggoobi, Wages, will take 1.46 trillion, non-wage will take 2.3 trillion, GOU Development will take 1.9 trillion and arrears will take 80 billion.