KAMPALA (Reuters) – Uganda‘s economy is set to expand by 5 percent in the 2012/13 fiscal year from 3.4 percent in the previous period, driven by falling lending rates and higher government spending, the IMF said on Tuesday.
“GDP growth is projected to increase to 5 percent this fiscal year, with core inflation averaging about 6 percent,” the International Monetary Fund said of the East African Nation that discovered oil in 2006 and expects to start production in 2017.
Potential delays in planned infrastructure projects and any problems in the country’s trading partners could however pose risks to its growth outlook, the Washington-based fund said in a statement.
It said fresh inflation pressure could come from “food price and exchange rate pass through effects.”…
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