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IMF projects 4.6% economic growth for Uganda by close of 2023

Uganda might experience 4.6% growth in real Gross Domestic Product this year
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According to the IMF Regional Economic Outlook that is available on the organisation’s website, Uganda might experience 4.6% growth in real Gross Domestic Product (GDP) by the end of 2023.

Other African countries on the list include: The Gambia, Rwanda, Nigeria, Ivory Coast, Guinea, and Ghana, among others.

According to the projections, Mozambique's real GDP is projected to grow faster than any other country in the region at a percentage of 7.0%

Mozambique is followed by the Democratic Republic of Congo at 6.7%, Rwanda at 6.2%, Ivory Coast at 6.2%, and Ethiopia at 6.1%.

The IMF stated that part of the reason for the likely poor performance is the inflationary shock that it said was precipitated by the Russia-Ukraine war, which prompted higher interest rates worldwide.

2023 has been a difficult year for activity in sub-Saharan African economies. The inflationary shock following Russia’s war in Ukraine has prompted higher interest rates worldwide, which has meant slowing international demand, elevated spreads, and ongoing exchange rate pressures,” the report read.

It further read: “As a result, growth in 2023 is expected to fall for the second year in a row to 3.3 percent from 4.0 percent last year. The region is expected to rebound next year, with growth increasing to 4.0 percent in 2024, picking up in four-fifths of sub-Saharan Africa’s countries, and with strong performances in non-resource-intensive countries. Macroeconomic imbalances are also improving—inflation is falling for most of the region, and public finances are gradually being put on a more sustainable footing.”

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