Uganda: Fourth Review under the Extended Credit Facility Arrangement, Requests for a Waiver of Nonobservance of a Performance Criterion and Modification of a Performance Criterion — Press Release; Staff Report; and Statement by the Executive Director for Uganda
IMF Staff Country Reports, June 26, 2023
Source details
- Canonical URL
- Uganda: Fourth Review under the Extended Credit Facility Arrangement, Requests for a Waiver of Nonobservance of a Performance Criterion and Modification of a Performance Criterion — Press Release; Staff Report; and Statement by the Executive Director for Uganda
Other formats
Bibliographic details
- Published: June 26, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400244964.002
Program objectives and reform focus
- The program aims to support the near-term response to the coronavirus disease 2019 pandemic and boost inclusive private sector-led long-term growth.
- Reforms focus on:
- creating fiscal space for priority social spending,
- preserving debt sustainability,
- strengthening governance and reducing corruption,
- enhancing the monetary and financial sector frameworks.
Macroeconomic projections and outlook
- The Ugandan economy is projected to grow by 5.5 percent in FY 22/23 and 6 percent in FY 23/24.
- Inflation has been declining and is expected to reach the Bank of Uganda’s medium-term target of 5% core inflation by end-2023.
- A stronger tightening of global financial conditions would:
- constrain the availability of syndicated loans,
- weigh on financial sector stability.
Policy priorities and recommendations
- Fiscal consolidation and tight monetary policy remain essential to keep debt on a sustainable path.
- Structural reforms should continue to focus on:
- strengthening governance and anticorruption frameworks,
- enhancing domestic revenue mobilization,
- boosting financial inclusion.
Risks and vulnerabilities
- External shock risk: tighter global financial conditions that limit syndicated loan markets.
- Financial sector stability risk tied to constrained external financing.
- Fiscal and debt sustainability risks if consolidation and monetary tightening are not maintained.
International Monetary Fund. Uganda: Fourth Review under the Extended Credit Facility Arrangement, Requests for a Waiver of Nonobservance of a Performance Criterion and Modification of a Performance Criterion-Press Release; Staff Report; and Statement by the Executive Director for Uganda, June 26, 2023.
Content in this bundle
- 1ugaea2023003