Grapevine

Economy posts positive results despite negative predictions

The country’s economic performance got a positive nod in the second quarter of the year, between April and June 2024, expanding by 6.6 percent, despite predictions by analysts that recovery was likely to nosedive, at the start of the year.

The Permanent Secretary in the Ministry of Finance, Planning, and Economic Development, who is also the Secretary to the Treasury, Mr Ramathan Ggoobi, said the high frequency indicators of economic activity show improvements by the private sector in conducting business.

“The Composite Index of Economic Activity (CIEC) grew to 166.63 in August 2024 from 166.03 in July 2024. Similarly, both the Purchasing Managers Index (PMI) and the Business Tendency Index (BTI) were recorded at 54.2 and 57.8 respectively in September 2024,” Mr Ggoobi said at the ministry’s office in Kampala yesterday.

Mr Ggoobi said this was above the threshold of 50, implying that the business health and sentiments in the private sector are positive and show improvements in the level of economic activity.

“With government’s continued investment in the ATMS (Agriculture, Tourism, Manufacturing, and Science) to grow the economy ten-fold and other strategic interventions, the economy is poised to grow between 6 and 6.5 percent this financial year. In the subsequent years, economic growth is projected to be higher,” he said.