• Mon. Oct 2nd, 2023

Uganda’s Economy Shows Positive Growth in 2023, Outperforming 2022

UGANDA, Kampala | Real Muloodi News | Uganda’s economy is already showing signs of improvement in 2023 compared to the previous year, with key figures indicating a positive trajectory.

Preliminary estimates from the Uganda Bureau of Statistics (Ubos) reveal that the country’s Gross Domestic Product (GDP) expanded by 5.3% in the fiscal year 2022/2023, up from the 4.6% recorded in 2021/2022.

The Ministry of Finance reported that Uganda’s economy grew by 6.8% in the first half of the fiscal year 2022–23, a significant increase from the 3.7% growth during the same period in the previous fiscal year. This resurgence in economic development indicates that the adverse effects of the Covid-19 pandemic have subsided.

The population is now actively engaged in economic activities, generating revenue and contributing to poverty reduction.

Dr Chris Ndatira Mukiza, the Executive Director of Ubos, highlighted that the services sector remained the largest contributor to GDP, accounting for 42.6% in the fiscal year 2022/2023, compared to 41.6% in the previous fiscal year.

“This was followed by the industry sector with a share of 26.1 percent in Fiscal Year 2022/2023 compared to 26.7 percent in the previous fiscal year, agriculture sector contributed 24.0 percent in Fiscal Year 2022/2023, a similar contribution registered in the Fiscal Year 2021/2022,” he said.

The industry sector contributed 26.1% (slightly down from 26.7%), while agriculture maintained a similar contribution of 24.0% in both years.

The gross value added for agricultural, forestry, and fishing operations increased by 5% in the fiscal year 2022/2023, surpassing the 4.2% growth observed in 2021/2022.

Dr Mukiza attributed this growth to the strong performance in food crop growing activities (4.7% growth), livestock activities (8.9% growth), and fishing activities (7.7% growth) in 2022/2023.

The cash crop-producing operations experienced slower growth at 2.1% compared to 5.7% in the previous year.

The industry sector’s gross value added increased by 3.9% in the fiscal year 2022/2023, slightly lower than the 5.1% growth in 2021/2022.

Notably, manufacturing grew by 3.0%, construction by 4.7%, and water supply by 5.4%, contributing to the sector’s expansion.

The services sector experienced significant growth, with a 6.2% increase in gross value added in the fiscal year 2022–2023, compared to 4.1% in the previous fiscal year.

Activities related to lodging and food services saw a notable growth of 11.9% in 2022/2023, contrasting with a decline of 2.5% in 2021/2022.

Similarly, arts, entertainment, and recreation recorded a growth of 4.0% in 2022/2023 after a decline of 2.2% in the previous year.

Information and communication activities grew by 10.4%, while education activities increased by 3.4% in 2022/2023.

The positive economic indicators for Uganda in 2022/2023 demonstrate a promising outlook for the country’s development.

With increased economic activity and sector-specific growth, Uganda is making significant strides towards sustainable and inclusive growth.

The data suggests that the Uganda’s economy is on the path to recovery and prosperity.


Uganda has 1500 Dollar Millionaires, 45% Growth in High-Net-Worth Individuals

Real Estate Takes the Lead in Approved Credit

Kampala’s Retail Market Faces Rising Costs of Living in H2 2022: Stanbic Properties Report