Despite bottleneck factors brought by the ongoing COVID-19 pandemic, Uganda has been named among the fastest growing economies in world in the report released by Bloomberg Opinion.
Developing countries dominated the list after developed countries that depend mostly on service sector were strongly hit the by the COVID-19 pandemic with most of European, American and Australia recording economic recessions for the first time in decades.
The new entrant in the middle income status Bangladesh was the leading on the list having registered an economic revamp of 5.0% down from 9.0% economic growths achieved by the Indian subcontinent country last year. Eastern Africa’s second largest economy Ethiopia was the second after posting 3.0% economic growth followed by Vietnam and China with 3.0% and 2.1% respectively.
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Uganda which had achieved 6.7% economic growth in 2019 and 6.1% and 7.3% in 2018 and 2017 respectively came in the 5th position with an annual growth rate of 2.1%.
Other countries on the list include Ivory Coast, Egypt, Ghana, Rwanda and Kenya in the 6th, 7th, 8th, 9th and 10th position respectively.
Uganda’s economy depends on agriculture which employs around 70% of the population and is the main source of raw materials for the Manufacturing sector and also providing market for two robust sectors the Manufacturing and service sector, this explains why it was one of the least hit by pandemic since agriculture production was almost unaffected.
Trade and Commerce, Education sector, Gaming and Lotteries and Tourism sector were the most hit sectors in Uganda which explains why this year’s economic growth of 2.1% was the lowest since 1986 when it was at 0.39% according to World Bank database.
Whereas Uganda has registered an economic growth, the country’s attempts to enter into the middle income status by the end of 2020 remain in vain.