Economy to stabilize after 5 months – Kasaija

Economy to stabilize after 5 months – Kasaija

By Serestino Tusingwire

The Finance Minister Matia Kasaija last evening told parliament that the economy is facing huge challenges, but the government is working to ensure it stabilizes within a short time.

“The economy is not sick, am telling you, it has just slowed down.” Kasaija said.

“Given the external imbalance and other domestic shocks, the exchange rate continues to face depreciation pressures,” he added.

He however downplayed fears of a recession following the cancellation of loans by the World Bank, election and post-election anxiety as well as geopolitical conditions as major constraints.

“The government is ensuring that the situation stabilizes within a period not later than five months.”

Uganda has been in economic turbulence since election time in February, and it struggled much when the World Bank stopped giving more loans to the country citing lack of transparence in the way the money is spent on particular projects.