Economy bouncing back, exports rise to $337 million in July

Kampala, Uganda | THE INDEPENDENT | As the country struggles to overcome of the effects of the recent lock-down to prevent the spread of the COVID-19 pandemic, Uganda’s export earnings increased for a second consecutive month to US$ 337.19 million in June 2020 from US$290.93 million in May 2020.

The value of imports also increased to US$ 543.6 million in June from US$ 435.6 million in May 2020.

According to the July 2020 performance of the Economy report, there was improvement in economic activity and international trade as the country continued to ease measures put in place to prevent spread of COVID19

The July report also indicates that the Uganda shilling continued to strengthen against the US Dollar in July 2020, registering an appreciation of 0.9% on account of increased inflows amidst subdued demand. The shilling traded at average mid-rate of Shs 3,703.5/ USD during the month compared to Shs 3,737.9/USD in June 2020

Annual headline inflation rose to 4.7% from 4.1% in June 2020 due to an increase in annual core inflation which rose to 5.8% from 4.9% recorded in June 2020.

Lending rates for shilling denominated credit rose to 19.3% in June 2020 from 18.8% recorded the previous month,lending rates for foreign currency denominated credit increased to 5.5% in June 2020 from 4.2% the previous month

In the fiscal sector, overall fiscal deficit amounted to Shs.1,723.31 billion in July which was lower than the programmed deficit of Shs 2,289.81 billion.This lower deficit was due to less expenditure during the month coupled with higher revenue collections.

Domestic revenue collections amounted to Shs1,201.52 bn against target of Shs.1,022.49bn for the month registering surplus of Shs 179.03 billion in July 2020.

Government expenditure amounted to Shs.2,988.50 bn in July 2020, 13.6% lower than what was budgeted for the month.