Uganda Sees Trade, Current Account Deficits Rise

The latest economic figures for Uganda point to an increase in the country’s current account deficit, which stood at $2.762 billion at the end of February. Meanwhile, the trade deficit was also up, rising $802 million during the past year.

The Bank of Uganda has attributed the deficits to high imports of capital by investors for construction and expansion of industrial facilities, including five new factories, as well as infrastructure projects.

The result is likely to be inflation and higher prices for consumers, with inflation already up from 3.7 per cent in February to 4.6 per cent in March. There are particular concerns about the impact of the trends on prices for medical drugs and treatment.

Additional concerns including warnings of drought in the region and pressure on fuel prices.