UGANDA – Current account deficit grows 127%

MILAN  — According to the finance ministry, Uganda’s current account deficit grew by 127% in the financial year 2008/09, to $1,094m from $482m in the previous year, said.

The deterioration reflected a surge in imported merchandise that outstripped the growth of exports, the ministry said in its background to the budget 2009/2010.

The trade deficit grew by 42.5% to $1,299m in the same period, from $911.75m in 2007/08.

Uganda’s private sector imported machinery, equipment, vegetable products, fats and oils and chemicals during the period under review.

Export receipts grew by 8.2% to $2.81b this financial year from $2.6b, as the impact of the global economic downturn hit prices and dampened demand for commodities.

Uganda exported more industrial products that accounted for over 70% of total exports. Other exports included maize, beans and bananas.

Coffee exports were estimated to have declined by 3.3% to $337m in the period under review on account of a drop in world unit international price.

The 5.2% increase in volume of coffee shipments did not fully compensate for the loss in unit price decline which explains the lower earnings from the crop.