Imports. Uganda has seen a spike in imports in the 12 months to October
thus leading to an increase in the current account deficit as the
country continues to spend more foreign exchange than it earns. FILE
PHOTO
The gap
between Uganda’s imports compared to exports, otherwise known as the
current account deficit, has widened by 45.1 per cent in the 12 months
to October.
The increase was occasioned by growth in private sector imports, according to the Bank of Uganda monetary policy report, a section of which focused on the country’s balance of payment.
The balance of payment is the record as any payment or receipt between one nation and its nationals with any other country.
The current account, the capital account, and the financial account make up a country’s balance of payments.
The widening of the current account deficit implies there were more outflow than inflows of foreign exchange to service imports.
During the period, according to Bank of Uganda, the financial account surplus in the 12 months leading to October 2019 was insufficient to finance the high current account.
Bank of Uganda said that the widening of the country’s current account deficit was due to higher private sector imports.
In its December monetary policy report, Bank of Uganda said: “During the last 12 months, the import bill grew by 14.3 per cent (or $850.2m) while exports grew by 9.6 per cent.”
However, apart from gold, the central bank noted, imports grew by 1.9 per cent with consumptive goods growing by 4.9 per cent.
The central bank also noted that capital or intermediate imports grew by 0.8 per cent.
Other developments in Uganda’s balance of payments, according to the report, indicate that financial account inflows increased by 72.3 per cent (or $1.119b).
A country’s capital account refers to any and all international capital transfers. The financial account is divided into two parts, namely, domestic ownership of foreign assets and the foreign ownership of domestic assets.
“Increased foreign direct investment inflows, coupled with significant draw down of deposit assets abroad by banks and the private sector, relative to the year to October 2018, where significant build up in deposits abroad was recorded,” the central noted.
According to the Bank of Uganda report, Foreign Direct Investment grew by 45.4 per cent from $1.2b to $1.75b.
A country’s capital account refers to any and all international capital transfers, whereby the overall expenditures and income are measured by the inflow and outflow of funds in the form of investments and loans flowing in and out of the economy within a certain period of time.
The increase was occasioned by growth in private sector imports, according to the Bank of Uganda monetary policy report, a section of which focused on the country’s balance of payment.
The balance of payment is the record as any payment or receipt between one nation and its nationals with any other country.
The current account, the capital account, and the financial account make up a country’s balance of payments.
The widening of the current account deficit implies there were more outflow than inflows of foreign exchange to service imports.
During the period, according to Bank of Uganda, the financial account surplus in the 12 months leading to October 2019 was insufficient to finance the high current account.
Bank of Uganda said that the widening of the country’s current account deficit was due to higher private sector imports.
In its December monetary policy report, Bank of Uganda said: “During the last 12 months, the import bill grew by 14.3 per cent (or $850.2m) while exports grew by 9.6 per cent.”
However, apart from gold, the central bank noted, imports grew by 1.9 per cent with consumptive goods growing by 4.9 per cent.
The central bank also noted that capital or intermediate imports grew by 0.8 per cent.
Other developments in Uganda’s balance of payments, according to the report, indicate that financial account inflows increased by 72.3 per cent (or $1.119b).
A country’s capital account refers to any and all international capital transfers. The financial account is divided into two parts, namely, domestic ownership of foreign assets and the foreign ownership of domestic assets.
“Increased foreign direct investment inflows, coupled with significant draw down of deposit assets abroad by banks and the private sector, relative to the year to October 2018, where significant build up in deposits abroad was recorded,” the central noted.
According to the Bank of Uganda report, Foreign Direct Investment grew by 45.4 per cent from $1.2b to $1.75b.
A country’s capital account refers to any and all international capital transfers, whereby the overall expenditures and income are measured by the inflow and outflow of funds in the form of investments and loans flowing in and out of the economy within a certain period of time.
Rising imports
According to the Bank of Uganda report, Foreign Direct Investment grew by 45.4 per cent from $1.2b to $1.75b.
A country’s capital account refers to any and all international capital transfers, whereby the overall expenditures and income are measured by the inflow and outflow of funds in the form of investments and loans flowing in and out of the economy within a certain period of time.
According to the Bank of Uganda report, Foreign Direct Investment grew by 45.4 per cent from $1.2b to $1.75b.
A country’s capital account refers to any and all international capital transfers, whereby the overall expenditures and income are measured by the inflow and outflow of funds in the form of investments and loans flowing in and out of the economy within a certain period of time.
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