Uganda’s GDP estimated to grow at 5.3 percent

Preliminary estimates of the Gross Domestic Product (GDP) indicate that the economy grew by 5.3 % in the FY 2022/23 compared to a revised growth of 4.6 percent in 2021/22.

This was according to the Uganda Bureau of Statistics (UBOS) Executive Director, Dr. Chris Mukiza while releasing preliminary estimates of the Gross Domestic Product. (GDP)

He added that the size of the economy in nominal terms grew to 184.3 Trillion in 2022/23 from 162.9 trillion in the last financial year.

In terms of the sector contribution to GDP, the services sector continued to be the biggest contributor with a share of 46.2 percent in 2022/23 compared to 41.6 percent in the previous financial year.

This was followed by the industry sector with a share of 26.1 percent in FY 2022/23 compared to 26.7 percent in the previous Financial Year.

The Agriculture sector contributed 24.0 percent in 2022/23, a similar contribution registered in 2021/22 Financial Year.

This was on the backdrop of the fact that Investors consider Uganda’s agricultural potential to be among the best in Africa, with low temperature variability, fertile soils, and two rainy seasons over much of the country - leading to multiple crop harvests per year. 

According to the UN’s Food and Agriculture Organization, Uganda’s fertile agricultural land has the potential to feed 200 million people.  Eighty percent of Uganda’s land is arable but only 35% is being cultivated.

Now taking stock of the Gross Value Added which is a factor of Gross output less intermediate consumption, agriculture, forestry and fishing activities registered a growth of 5.0 percent in 2022/2023 compared to an earlier growth of 4.2 percent registered in 2021/2022.

According to Dr. Mukiza, this performance was attributed to good performance in food crop growing activities which registered a growth of 4.7 percent, livestock activities by 8.9 percent while fishing activities registered a growth of 7.7 percent from a slow growth of 0.3 percent.

However cash crop growing activities registered a slow growth of 2.1 percent compared to 5.7 percent the previous year.

In other sectors, the gross value added for the industry sector registered a growth of 3.9 percent, compared to 5.1 percent, majorly attributed to manufacturing which grew by 3.0 percent while construction activities and water supply grew by 4.7 percent and 5.4 percent respectively.

On the other hand the gross value added for the services sector grew by 6.2 percent from 4.1 percent, due to trade and repair activities which grew by 5.8 percent from 3.4 percent.

Meanwhile remarkable growth was recorded in the accommodation and food sectors of 11.9 percent compared to a decline of 2.5 percent in 2021/2022.

“It appears that people are getting out of the Covid19 hangover and they have started enjoying themselves in restaurants and hotels,” said Mukiza

Similarly, arts, recreation and entertainment bounced back with a growth of 4.0 percent following a decline of 2.2 percent the previous year.

Relatedly, information and communication activities grew by 10.4 percent in 2022/2023 compared to a growth of 7.4 percent in 2021/2022 while education registered a growth of 3.4 percent compared to 1.5 previously.

However, the good performance in the services sector was undermined by poor performance in transport and storage activities which declined by 7.0 percent compared to a decline of 3.8 percent last financial year.

Also to note is that financial and insurance activities registered a decline of 1.5 percent in 2022/2023 compared to an earlier growth of 4.5 percent.

Taxes on products grew by 6.3 percent in 2022/2023 compared to an earlier growth of 7.5 percent in the previous financial year.