UBOS: New reports show Uganda’s GDP in a rapid increase
New reports show Uganda’s GDP increases – Manufacturers, especially for drinks or beverages, did better in helping to push Uganda’s industry sector value-added up by 7.3%.
According to the UBOS executive director, Ben Paul Mungyereza, Uganda’s GDP figures for the last months of 2017 are significantly better than those recorded throughout the same interval in 2016 that means the economic system is just about recovering quickly from the doldrums of two years in the past.
He says; year-on-year quarterly Gross Domestic Product (GDP) growth stood at 6.6% within the second quarter (Q2) of 2017/18 in comparison with the growth of 2.8% in Q2 of 2016/17. Q2 is the interval between October and December throughout a financial year.
In a statement issued earlier, Mungyereza stated;
In value terms, the economic system expanded from UGX14,264 billion (about $3.8 billion) in Q2 2016/17 to UGX15,206 billion (just over $4 billion) in Q2 2017/18.
The reports additionally show that Value-added in agriculture sector is estimated to have increased by 3.5% in Q2 of 2017/18 from a decline of 1.9% in the Q2 of 2016/17. This was primarily as a result of a rise in food crop growing activities that grew at 7.1% in Q2 2017/18 on account of beneficial climate patterns.
Value-added in industry sector grew by 7.3% in Q2 of 2017/18 in comparison with a growth of 4.3% in Q2 of 2016/17. The better performance of Q2 2017/18 compared to Q2 2016/17 was primarily pushed by the rise in crude oil mining/exploration activities and manufacture of drinks and tobacco.
Manufacturers, especially for drinks or beverages, did better in helping to push Uganda’s industry sector value-added up by 7.3%.
The services sector value-added grew by 8.9 percent in Q2 of 2017/18 compared to an earlier growth of 3.9 percent in Q2 of 2016/17. Higher efficiency of Q2 2017/18 compared to Q2 2016/17 was on account of the good performance of financial and insurance activities that grew by 12.5%.
Gross Domestic product (GDP) is the summation of the total production that took place in economic system. When a country’s GDP is high it signifies that the country is increasing the amount of production that is going down within the economy and the citizens have a higher income and hence are spending more.
Increased production leads to a lower unemployment rate, further increasing demand. Increased wages lead to higher demand as consumers spend more freely.
This results in higher GDP combined with inflation. Increased demand within the face of decreased supply quickly forces prices up.