The World Bank has said that agriculture and natural resources are giving great boost to the economy of Uganda.
The observation was based on the Bretton Woods institution’s latest economic analysis on Uganda, according to World Bank Country Manager for Uganda, Tony Thompson.
It stated that the significant shift of Ugandans to agriculture in response to the Coronavirus Disease crisis heightened the urgency for the country to enhance sustainable use of natural resources.
Thompson was quoted as saying, “Following the job losses and closure of small businesses, many people returned to agriculture and other natural resources-dependent activities to manage and survive the crisis.
“The economic growth outlook is 4.6 per cent in 2022, and accelerated to 6.4 per cent in the 2023 fiscal year, as domestic demand conditions improve, and global recovery continues as COVID-19 vaccines are rolled out.”
The country’s Gross Domestic Product contracted by 1.1 per cent in 2020, and is estimated to have recovered to 3.3 per cent during the 2021 fiscal year.
The bank’s Senior Economist and lead author of the report, Rachel Sebudde, said, “As the crisis abates, fiscal consolidation and prioritisation of spending towards human capital development and greener investments will be the lynchpin into a greener, resilient and inclusive recovery.”
The macro-economic recovery and stimulus packages, combined with structural measures, will sustainably increase productivity and build resilience to enhance livelihoods, the economy and general well-being, the bank added.
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