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UGANDA’S GDP GROWTH SLOWED TO 3.9 PCT IN 2016

KAMPALA, Uganda's Gross Domestic Product (GDP) growth slowed down to 3.9 per cent in the 2016/2017 fiscal year from 4.7 percent recorded in 2015/2016, according to Dr. Chris Mukiza, the Uganda Bureau of Statistics (UBOS) Macro Statistician.

During 2016/17, all the sectors experienced slower growth compared with FY 2015/2016, Mukiza said here Wednesday.

In particular, growth of the agriculture, forestry and fishing sector dropped to 1.3 per cent in 2016/17 from 2.8 percent previously. The decline in agricultural production was noted especially for cash crops from 7.9 per cent in 2015/16 to 0.4 per cent in 2016/17.

Overall, the agricultural sector's contribution to total GDP was 25 per cent in 2016/17 compared with 23.7 per cent previously because of steep price increases of food crops. It was noted that Uganda's annual headline inflation rate rose to 7.2 per cent in May 2017 from 6.8 per cent in April, according to data from the Uganda Bureau of Statistics.

"Food crop growing activities were much lower than the population growth. This led to the famine that ravaged most parts of the country, Mukiza added.

Examples of cash crops which registered positive growth include coffee (3.9%), cotton (22.3%), cotton (22.3%), and flowers (15.5%). However, declines in value added were registered for tea (-19.3%), cocoa (-13.7%), vanilla (-48.8%), tobacco (-48.3%), and sugar cane (-8.3%).

Cash crops that are more tolerant to adverse weather conditions registered growth whereas weather-sensitive cash crops were affected by unfavourable weather, Mukiza said.

Other sectors which contributed to the decline in GDP growth included mining and quarrying from 11.4% in 2015/16 to 4.5% in 2016/17, industry from 4.7% in 2015/16 to 3.4% in 2016/17, especially the construction sector.

Source: NAM NEWS NETWORK

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