The governor of Bank of Uganda, Emmanuel Tumusiime Mutebile has warned that tough times lie ahead for the national economy should government declare a second lockdown due to the Covid-19 pandemic.
The revelations were made by the governor while appearing before the committee of the National Economy to believe parliament on the effects of coronavirus pandemic to the economy.
In a bid to address the effects of the coronavirus pandemic, the committee of the National Economy has met different sectors to draw mechanisms of how to keep the economy moving.
Mutebile disclosed that ever since the country went into lockdown, there has been a very big decline in the economy which has worsened the financial stability, and should the government announce the second phase of the lockdown, the economy will be doomed.
Already, the economy has taken a battering as many businesses have closed due to the Covid-19 pandemic.
Some people have lost jobs while economists have warned of an economic recession should the pandemic persist until the end of the year.
However, some MPs on the National Economy committee expressed mixed reactions about Mutebile’s remarks.
Mutebile revealed that just in three months since the lockdown, the government has endlessly borrowed from the central bank, something that could further put the country in a precarious situation going forward.