Uganda’s Economy to Worsen – Economist

Uganda’s Economy to Worsen – Economist

Economists have predicted tough times ahead with a further weakening of the Uganda shilling this year in response to global sentiments.

According to Jibran Qureishi, Stanbic Bank’s Chief Economist for East Africa, the shilling is expected to trade between 3,850 and 3,900 against the US Dollar at the end of the year.

“Uganda’s economy is set to worsen even more than this if government does not come up early and put preventive measures,” Qureishi said.

Speaking at the Stanbic Economic Outlook Breakfast meeting in Kampala, Qureishi also predicted a rise in headline inflation to about 8% in May 2017 as a result of reduced food production due to prolonged drought.

He however, quickly added that all is not gloom and doom if government invests in irrigation, boosts domestic savings and tackles tax evasion to support the country’s development agenda.

“There are prominent risks for the Uganda currency outlook. We need the government to invest in irrigation because of drought. We need to look for more innovation, getting banks closer to unbanked through mobile,” Qureishi advised.

The meeting that took place yesterday in Kampala, was running under the theme: “Stimulating Economic Growth Advancing Opportunities for Financial Inclusion”

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