IMF forecasts 6% growth for Uganda in ’24

The International Monetary Fund (IMF) concluded its 2024 Article IV Consultation with Uganda, forecasting robust growth of 6 per cent for FY23/24, up from 5.3 per cent the previous year. The IMF expects inflation to approach the Bank of Uganda’s 5 per cent target with the start of oil production.

According to the IMF report, the country’s challenges persist, including a high current account deficit and strained international reserves, which now cover only 2.9 months of imports. Although the fiscal deficit has improved, it remains above targets due to revenue shortfalls and increased spending.

On the other hand, the IMF commended Uganda’s economic progress but stressed the need for continued reforms to address fiscal and reserve pressures. They recommended further fiscal consolidation, effective management of oil revenues, and vigilant monetary policy.

Attribution: IMF

Subediting: M. S. Salama