Economy performing below potential

The current economic performance is way below potential and calls

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for increased activity.

According to the Bank of Uganda Director Research Adam Mugune, there has been a poor performance

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of key sectors that drive the economy like commercial banks registering losses, depreciating shilling, decline in cross border trade especially with South Sudan among others.

Releasing the monthly monetary policy statement, Mugume said the bank had projected a 6.5% Gross Domestic Product (GDP) growth by this time but it is still at 6%.

Meanwhile the bank has maintained the Central Bank Rate at 11.5% in anticipation of a rise in inflation from the current 7.1%.

 

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