Uganda’s economy grew by 5.3% –Ubos

Idlers lounging at the Independence Monument at Speke Road in Kampala on November 30. According to the 2021 National Labour force report, 49 per cent of the working age population were outside the labour force. PHOTO/STEPHEN OTAGE

What you need to know:

  • The statistics body said the economy has grown by more than Shs21 billion in the last one year. 

The preliminary estimates of the Gross Domestic Product (GDP) released by the Uganda Bureau of Statistics (Ubos) has indicated that Uganda’s economy grew by 5.3 percent in the fiscal year 2022/2023 compared to 4.6 percent registered in the financial year 2021/2022 following a pickup in economic activities.


Revival in Uganda’s economic growth indicates that the impact of the Covid-19 pandemic has scaled down and the people are now engaged in economic activities, which creates income for citizens and in turn leads to a reduction in poverty levels.

Presenting the preliminary annual gross domestic product for the fiscal year 2022/23 in Kampala on Wednesday, the executive director of Ubos, Dr Chris Ndatira Mukiza said the size of the economy in nominal terms increased to Shs184.28 trillion in the Fiscal Year 2022/2023 from Shs162.88 trillion in the Fiscal Year 2021/2022.

Dr Mukiza said the services sector continued to be the biggest contributor to GDP with a share of 42.6 percent in Fiscal Year 2022/2023 compared to 41.6 percent in the Fiscal Year 2021/2022.

“This was followed by the industry sector with a share of 26.1 percent in Fiscal Year 2022/2023 compared to 26.7 percent in the previous fiscal year, agriculture sector contributed 24.0 percent in Fiscal Year 2022/2023, a similar contribution registered in the Fiscal Year 2021/2022,” he said.

In terms of value-added; agriculture, forestry, and fishing, Dr Mukiza said gross value added for agriculture, forestry, and fishing activities registered a growth of 5 percent in  Fiscal Year 2022/2023, compared to an earlier growth of 4.2 percent registered in Fiscal Year  2021/2022.

Dr Mukiza explained that the performance in agricultural activities is largely attributed to the good performance in food crop growing activities which registered a growth of 4.7 percent, livestock activities which grew by 8.9 percent in Fiscal Year 2022/2023, and fishing activities which registered a growth of 7.7 percent in Fiscal Year 2022/2023 from a slow growth of 0.3 percent in Fiscal Year 2021/2022.
However, Dr Mukiza said cash crop growing activities registered a slower growth of 2.1 percent in Fiscal Year 2022/2023 compared to 5.7 percent in Fiscal Year 2021/2022.

He said the gross value added for the industry sector registered a growth of 3.9 percent in Fiscal Year 2022/2023 compared to a growth of 5.1 percent in Fiscal Year 2021/2022. The growth in the sector is majorly attributed to manufacturing which registered a growth of 3.0 percent in Fiscal Year 2022/2023, construction activities which grew by 4.7 percent in Fiscal Year 2022/2023, and water supply activities which registered a growth of 5.4 percent in Fiscal Year 2022/2023.

The value added for services indicates that the gross value added for the services sector registered a growth of 6.2 percent in Fiscal Year 2022/2023 compared to 4.1 percent growth in Fiscal Year 2021/2022.

During the last one-year, Dr Mukiza said accommodation and food services activities grew by 11.9 percent in Fiscal Year 2022/2023 compared to a decline of 2.5 percent in Fiscal Year 2021/2022. “Similarly, Arts, Entertainment and Recreation bounced back with a growth of 4.0 percent in Fiscal Year 2022/2023 following a decline of 2.2 percent in Fiscal Year 2021/22,” he said.

Ubos figures show that Information and communication activities grew by 10.4 percent in Fiscal Year 2022/2023 compared to a growth of 7.4 percent in Fiscal Year 2021/2022 while education activities registered a growth of 3.4 percent in Fiscal Year 2022/2023 compared to 1.5 percent in Fiscal Year 2021/2022.

 Dr Mukiza said Uganda’s population stood at 45.97 million as of December 2022, adding that GDP per capita stands at Shs408 million, which is $1088 up from $1043 in Fiscal Year 2021/2022.  

On May 30 during the launch of the National Budget Month in Kampala, the Permanent Secretary/ Secretary to the Treasury, Mr Ramathan Ggoobi, said the economy is projected to grow by 5.5 percent in the Financial Year 2022/2023 and hit 6 percent in the Financial Year 2023/2024. He added that in the medium term the economy is projected to grow by 7 percent.
  
Mr Ggoobi said this is because of increased oil and gas activities, and increased production due to the Parish Development Model, a poverty alleviation programme, regional trade and improved global conditions.