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Services remain largest contributor to GDP, says Ubos
The services sector continues to be a key contributor to gross domestic product. Photo / File
What you need to know:
- Data indicates that the services sector has for years continued to be the biggest contributor to GDP, with a share of 42.4 percent in the 2022/23 financial year
Services contribute almost half of Uganda’s gross domestic product, according to data from the Uganda Bureau of Statistics (Ubos).
Data indicates that the services sector has for years continued to be the biggest contributor to GDP, with a share of 42.4 percent in the 2022/23 financial year.
This was a 0.7 percentage growth from the 41.7 percent that the sector contributed in 2021/22 financial year.
The services sector comes ahead of industry, whose contribution reduced to 26 percent from 26.8 percent in the 2021/22 financial year, while agriculture contributed 23.8 percent, which was lower than the 24 percent registered in 2021/22.
Dr Chris N Mukiza, the Ubos executive director, said during a press briefing that in terms of gross value, agriculture, forestry and fishing activities registered a growth of 4.8 percent compared to 4.2 percent due to good performance in food crop growing, which registered a growth of 4.7 percent and livestock activities, which registered a growth of 8.6 percent.
However, he said the performance was undermined by poor performance in cash crop growing activities, which declined by 0.1 percent compared to a 5.7 percent growth in the 2021/22 financial year.
The gross value added to the industry sector declined by 3.5 percent compared to a growth of 5.1 percent due to a slowdown in construction activities to 4.8 percent, water supply activities to 4.2 percent and manufacturing to 3.1 percent.
During the year, electricity activities grew by 2.8 percent while mining and quarrying slowed down to 2.2 percent from 18.3 percent.
Gross value added to the services sector was 6.2 percent compared to 4 percent due to increased activity in trade and repairs, which grew by 5.7 percent from 3.4 percent.
During the period, Dr Mukiza said accommodation and food services grew substantially to 12.4 percent from a decline of 2.5 percent, while arts, entertainment and recreation grew by 4.1 percent from a decline of 2.2 percent.
The professional, scientific and technical activities grew by 28.6 percent compared to 3.1 percent, while administrative and support services grew by 17.8 percent from 3.5 percent.
Information and communication activities grew by 10.3 percent from 7.4 percent in the period while education activities grew by 3.4 percent from 1.5 percent.
However, good performance of the services sector was undermined by the poor performance of transport and storage activities, which declined further by 5.9 percent from an earlier decline of 3.8 percent. Taxes on products grew by 7.1 percent, which was lower than the 7.5 percent growth registered in the 2021/22 financial year.
