BoU signals positive outlook

Impact. The 4.1 point increase in the index implies that investors will consider Uganda as a conducive business environment.

Uganda’s economy is this year projected to deliver growth from productive sectors that support a large portion of the labour force, offering a prospect of increased job creation.
This follows a business confidence survey by the Central Bank indicating increased investor confidence in Uganda’s economy this year.
The Bank of Uganda (BoU) said the business outlook of the economy during January 2013 was buoyant with the confidence index standing at 63.9 points.
“This reflected more optimism when compared to December 2012 as the overall Confidence Index increased from 59.8 points in December 2012 to 63.9,” says the executive director research at Bank of Uganda, Dr Adam Mugume.
The survey shows that the outlook of businesses is optimistic across all sectors, demonstrating that the economy will perform better this year compared to last year.
Composite Index of Economic Activity (CIEA) by BoU indicates further recovery in the growth of the economy at 0.6 per cent during December 2012.
The main drivers of economic activity included manufacturing, wholesale and retail trade.

Sector analysis
The services index grew by 0.4 per cent in December 2012 compared to the previous month showing that activities in the hotel & restaurant industry and retail trade have continued to drive this growth.
The monthly agricultural production index rose by 5 per cent to 213 in December from 203 in November 2012. Significant increases in market deliveries were recorded in irish potatoes, ground nuts and matooke.
However, the December industry index is estimated to have decreased by 0.9 per cent compared to November 2012 but increased by 0.3 percent to 180.4 from 179.8 in December 2011.

moketch@ug.nationmedia.com