Why China’s volatility is bad for Uganda’s economy

Goods offloaded at Entebbe International Airport. Ugandan traders are among those feeling the pinch from the squeeze of the Chinese economy. Photo by RACHEL MABALA.

What you need to know:

China’s slackening progress translates to the fact that her more than 1.3 billion people cease to be potential consumers of goods produced by other economies, William Lubuulwa writes

The volatility in global financial markets shows how rapidly risks can spill over from one economy to the next. World stock markets and the currencies of many emerging markets, for instance, have seen large swings since China’s decision to devalue its currency. The People’s Bank of China astounded markets with three successive devaluations of the yuan, knocking over 3 per cent off its value. The first devaluation that came in August 2015 marked the largest single drop in more than 20 years.


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