Uganda's central bank warns of impact of looming global economic recession
INTERNATIONAL – Uganda's central bank on Thursday warned that the looming global economic recession is likely to have an impact on the country's balance of payments, which could result into exchange rate volatilities.
Emmanuel Tumusiime Mutebile, governor of Bank of Uganda, told reporters that although Uganda's economic growth is projected to grow at 6 percent to 6.3 percent in the financial year 2019/20, there are downward risks to the outlook.
"On the external scene, lower external demand due to depressed global economy could weigh on Balance of Payments developments, particularly financial flows and services such as tourism and lead to volatility in the domestic foreign exchange market," Mutebile said.
He said that on the domestic scene, weather-related constraints to agricultural production and delays in the implementation of public investment programs could dampen economic activity.
Adam Mugume, executive director of research at Bank of Uganda, said the country has had a decline in exports by 9 percent resulting from decline in coffee, beans and maize export.
On the foreign direct investment (FDI), Mugume said that in the financial year 2018/19, the country registered $1.8 billion , the highest the country has ever received in the past four years. He said the FDI flowing into Uganda came Europe, America, China and India.