Uganda's current account deficit betters
Jun 04, 2008
UGANDA’S current account deficit narrowed slightly to $28.1m in March compared to $29.6m in the same period last year. This was due to higher export earnings and the Government inflows, a topcentral bank official explained.
By Sylvia Juuko
UGANDA’S current account deficit narrowed slightly to $28.1m in March compared to $29.6m in the same period last year. This was due to higher export earnings and the Government inflows, a topcentral bank official explained.
“We saw some slight improvement in the current account due to the Government inflows like grants for budget support and debt relief,†said Mary Katarikawe, the acting director for research.
She was quoting the bank’s April monthly economic and financial indicators report.
The current account covers goods, services incomes and transfers.
Exports -- mainly coffee, fish, flowers, cotton and tobacco -- earned the country a total of $171.6m in March, compared to $162.2m in March 2007, the report showed.
Goods imports increased to $309.86m in March compared to $215.55m in the corresponding period last year.
“The increased value of imports in March 2008 compared to the same period last year is on account of increased real economic activity,†said the report.
Private sector imports like machinery, vehicles and accessories, chemicals and related products, vegetable products, base metals also increased to $258.3m in March compared to $177.7m in March last year.
Private sector’s oil import bill shot up to $47.87m compared to $32.99m in the period under review.
The report indicated that the level of gross foreign reserves increased to $759.4m, which was estimated to cover 6.5 months of future imports of goods and services.
UGANDA’S current account deficit narrowed slightly to $28.1m in March compared to $29.6m in the same period last year. This was due to higher export earnings and the Government inflows, a topcentral bank official explained.
“We saw some slight improvement in the current account due to the Government inflows like grants for budget support and debt relief,†said Mary Katarikawe, the acting director for research.
She was quoting the bank’s April monthly economic and financial indicators report.
The current account covers goods, services incomes and transfers.
Exports -- mainly coffee, fish, flowers, cotton and tobacco -- earned the country a total of $171.6m in March, compared to $162.2m in March 2007, the report showed.
Goods imports increased to $309.86m in March compared to $215.55m in the corresponding period last year.
“The increased value of imports in March 2008 compared to the same period last year is on account of increased real economic activity,†said the report.
Private sector imports like machinery, vehicles and accessories, chemicals and related products, vegetable products, base metals also increased to $258.3m in March compared to $177.7m in March last year.
Private sector’s oil import bill shot up to $47.87m compared to $32.99m in the period under review.
The report indicated that the level of gross foreign reserves increased to $759.4m, which was estimated to cover 6.5 months of future imports of goods and services.