The Ministry of Finance indicates that the relaxation of inflationary pressures is expected to contribute to achieving the growth objective of 5.3%, set by the Government for the entire 2022/2023 financial year.
The Ugandan economy grew by 6.8% in the first half of the 2022/23 fiscal year (July 1 to June 30), compared to 3.7% recorded in the same period of the previous fiscal year, according to a statement published on Monday by the Ministry of Finance.
The growth recorded between July 1 and December 31, 2022 was mainly driven by the services, agriculture, forestry and fishing sectors, indicated the same source.
The Ministry of Finance also stated that the easing of inflationary pressures puts Uganda on track to achieve the Government's growth target of 5.3% for the full financial year 2022/2023.
The Ugandan government expects the country's GDP to grow by 6% in 2024 and the economy to grow more than 7% annually from 2025, as oil fields in the west of the country come online.
In January this year, Uganda launched a program to drill production wells in the Kingfisher oil field, located in the Lake Albert region (west).
The field, exploited by the Chinese company CNOOC, is expected to come into operation in 2025.
Lake Albert is the natural border between Uganda and the Democratic Republic of the Congo and contains about 6.5 billion barrels of crude oil, of which about 1.4 billion are currently considered recoverable.