It has been a rather challenging year. With a weak external sector, Geo-political factors and the domestic environment affected by the election anxiety early in the year, there has been a contraction and economic activity took a nose dive.
Last month the Bank Of Uganda eased monetary policy, in my view that was an appropriate action aimed at boosting private sector growth and support economic activity.
Stephen Kaboyo, the Alpha Capital Markets boss says that the current slump is not unique to Uganda.
He adds: most of the economies in sub- Sahara Africa are also going through similar challenges on account of low commodity prices, a slowdown of inflows from major trading partners, weak currencies, rising fiscal vulnerabilities just to mention a few.
While there are short term challenges, medium prospects look promising.
Growth is projected to bounce back primarily driven by the multi-billion dollar investments in hydro power stations including 600MW Karuma Power Dam(Ugx. 4.8 trillion),Standard gauge railway(Ugx.7.6 trillion), roads and oil refinery ($4.27billion) and related infrastructure.
This will offset the effects of the weak external sector and put the economy on good footing in the coming year.