Uganda's economy demonstrates remarkable stability in a global context, says Ggoobi

Climate Change
Uganda's economy demonstrates remarkable stability in a global context, says Ggoobi
Mr. Ggoobi speaks during the show on NBS TV.

Ramathan Ggoobi, the Permanent Secretary at the Ministry of Finance has emphasised Uganda's resilient economy and its continued path to recovery.

He attributed this success not to luck but to effective coordination and government strategies that have ensured the availability of foreign exchange, supported international trade, and effectively managed inflation, which currently stands at 2.4% as of October 2023, below the target of 5%.

During an appearance on NBS TV, Ggoobi highlighted the positive improvements in export performance, with a reduction of the trade deficit by approximately 9%.

He also mentioned the notable progress in the tourism sector, which generated USD 1,066.41 million in the financial year 2023/24, as well as increased foreign direct investment inflows from USD 1,688.56 million in the financial year 2021/22 to USD 2,842.65 million in the financial year 2022/23.

Regarding the budget, Ggoobi emphasized the importance of maintaining continuity, stating that the focus for the next fiscal year would remain consistent with the current year's priorities.

He reassured medical Interns that their funds are available in the budget and will be disbursed accordingly.

Ggoobi underscored the government's commitment to fiscal prudence, expressing a reluctance to spend or borrow beyond their means.

He mentioned specific measures taken, such as the cessation of purchasing new cars, a 50% reduction in international travel, and a decrease in workshops.

Ggoobi also highlighted the positive impact of budget rationalization on organizations like the Uganda Revenue Authority (URA).

He noted that Uganda's trade performance in the East African Community (EAC) is in surplus, exceeding $770 million.

He also mentioned the decrease in inflation, with Uganda being one of the countries with low inflation, currently at 2.5% compared to a target of 5%.

Despite the challenges posed by COVID-19 and geopolitical issues, Ggoobi emphasised that Uganda stands as one of the stable countries in the developing world at a macro level.

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