Uganda: Solid growth despite a loss of momentum

Loss of momentum

The country saw a +7.6% average growth rate over the 2000-2010 period. Yet it experienced a loss of momentum seeing this average drop to +4.2% between 2011 and 2016. This moderation (especially in 2016) is attributable to unfavourable climatic developments (drought) but also to a credit contraction, as a consequence of rising non-performing loans on domestic banks’ balance sheets. Following the +2.3% growth in 2016, EH expects Uganda’s economic activity to expand at a faster pace of +4% and +4.5% respectively in 2017 and 2018, supported by investments in infrastructure and the oil sector.