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Uganda exported goods worth $634.43 million (about sh2.410 trillion) in March 2024. This is a 0.2% increase from the $633.0 million (about sh2.402 trillion) exported in the previous month.
This information comes from a new report by the finance ministry, which was shared on X, previously known as Twitter, on Tuesday, May 21, 2024.
The report explains that the increase in export earnings was mainly due to higher receipts from tobacco, simsim (sesame seeds), hides and skins, and gold.
Additionally, Uganda’s imports rose by 14.1% to $1,037.84 million in March 2024, up from $909.54 million in February 2024.
The increase in imports was driven by higher private sector demand for vegetable products, beverages, fats and oils, mineral products (excluding petroleum products), and plastics, rubber, and related products, according to the monthly report for April 2024.
Due to the larger increase in imports compared to exports, Uganda’s trade deficit with other countries widened by 45.9%, reaching $403.41 million in March 2024 from $276.54 million in February 2024.
The report also noted that overall economic activity in Uganda strengthened, and there was optimism about future business conditions.
Indicators of economic activity, such as the Composite Index of Economic Activity (CIEA), the Purchasing Managers’ Index (PMI), and the Business Tendency Index (BTI), all showed improvement.
The CIEA increased to 162.38 in March 2024 from 162.19 in February 2024, indicating better economic activity, mainly in the agriculture and industry sectors.
The PMI, which had been declining, rose above the threshold of 50 to 52.6 in April 2024 from 49.3 in March 2024. This rise suggests an improvement in business conditions, with increased demand leading to more new orders and higher output. The PMI also indicated that firms were likely hiring new staff, reflecting a positive outlook for future production.
At the sectoral level, the construction, industry, services, and wholesale and retail sectors all saw increased activity, according to the report.