Uganda's Economic Growth Stalls, Falls Short of Government Target
President Yoweri Museveni's ambitious plan to boost Uganda's economy to 7% growth appears to have stalled. Economists now predict a stagnant economy, hovering between 5.5% and 6% since before the COVID-19 pandemic.
Beyond the Numbers:
Economists argue that focusing solely on growth figures paints an incomplete picture. They believe the true health of the economy lies in its tangible outcomes. These outcomes, they say, point to a struggling economy:
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- Stagnant job creation
- Trade deficit (imports exceeding exports)
- Business closures
- Food security concerns due to limited rainfall
Overly Optimistic Projections?
Economist Fred Muhumuza criticizes the government's economic projections as overly optimistic, suggesting they prioritize presenting a positive image over reflecting reality. He emphasizes that growth figures should translate into real improvements in people's lives.
Public Accounts Committee Weighs In
Muwanga Kivumbi, chairperson of the Public Accounts Committee, echoes similar concerns. He points out that budget performance has consistently fallen short, never exceeding 45 trillion shillings. He argues that these inflated figures create a misleading narrative of a thriving economy.
The Takeaway
Uganda's economic growth is failing to meet government targets. Economists and legislators highlight the need to move beyond rosy projections and address the real challenges faced by ordinary Ugandans.
