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13 December 2011

General Economic Overview

Domestic economic growth in the financial year 2002/03 was constrained by the terms of trade decline that started in 1998/99 and the delayed rains that curtailed agricultural growth. The lower food crop output offset the strong growth in cash crop production by 9%, especially in coffee and cotton production. The agricultural sector which contributes just over 40% of GDP grew much less relative to other sectors and the terms of trade against rural farmers curtailed domestic purchasing power hence affecting demand for imports and domestic manufacturers. There was no expansion in overall non-monetary agriculture. Consequently, for the larger part of the financial year, annual headline inflation, which includes the food crop component of the Consumer Price Index (CPI) basket, rose and averaged 5.9%. By contrast, annual underlying inflation, which excludes food crop prices, averaged 2.9%.

For More Information please visit the Bank Of Uganda website for more information on Uganda's Economic Enviroment.