Economy to grow at 7% â€" Mutebile

Jan 01, 2009

THE International Monetary Fund has predicted that the effects of the global financial crisis and recession on Uganda’s economy will not go above 2%, the central bank governor has said.

By David Muwanga

THE International Monetary Fund has predicted that the effects of the global financial crisis and recession on Uganda’s economy will not go above 2%, the central bank governor has said.

“This means that instead of growing at the predicted 9%, the economy will grow at 7%,” Tumusiime Mutebile said at the opening of a Diaspora workshop at Hotel Africana in Kampala recently.
However, he said the global financial crisis and recession would reduce export earnings and remittances from Ugandans living abroad.

“Uganda is likely to receive lower remittances in the short-term,” the governor said.

“The crisis will also negatively affect the flow of Overseas Development Assistance and Uganda’s exports to foreign countries,” Mutebile said.

He said that in terms of policy implications, critical monitoring of remittances indicators is required through institutional surveillance mechanisms in the Bank of Uganda, finance ministry and the Uganda Bureau of Statistics.

“A daunting challenge for Uganda is brain drain that has deprived the country of a significant number of skilled workers,” he said.

“The health and education sectors are most vulnerable to this regrettable trend as the country is experiencing difficulties in delivery of health and education.”

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