UGANDA: Economic activity posted strong growth of 6.8 percent y/y in 2Q23, despite slowing from growth of 9.3 percent in 2Q22.
The slower growth was a result of easing crop-growing activities to 0.8 percent y/y in 2Q23 from 12.0 percent in 2Q22. Supporting growth in the period was the industrial sector which grew by 7.0 percent y/y as construction activity lifted by 8.7 percent. The services sector, on the back of increased trade and hospitality-based activities, grew by 8.8 percent y/y over the same period. Final consumption expenditure declined by 4.8 percent y/y, likely on the back of latent effects of inflation and tight momentary policy. However, this was counteracted by robust growth from investments of 9.7 percent y/y, in line with the activities in the construction sector.
Meanwhile, the Ugandan Coffee Development Authority released its monthly report showing that coffee exports grew by 48.2 percent y/y in August, to the highest-ever recorded figures of 743,517 60-kilo bags. This represented an increase in value of 70.7 percent y/y (US$121.6 million), compared to August last year. The 12-month cumulative figures now totaled 6.08 million bags worth US$918.76 million, compared to 5.94 million bags worth US$872.00m by the end of August 2022.
This represents an increase of 5 percent in quantity and a 2 percent increase in value. Key to the growth over the period has been the 50.95 percent increase in Robusta coffee in August 2023 relative to August 2022. According to the report, in September, total exports are expected to decline to 600,000 60-kilo bags as parts of the country get to the tail-end end harvest and as other parts prepare for the main harvest season.
