Uganda’s merchandise trade deficit increased at the fastest rate in seven months in January as goods exports fell while inbound shipments rose for the first time since July 2021.
The goods trade deficit jumped to $228.9m (Shs821.4bn), rising 50.8 per cent from the same month a year ago. Merchandise exports fell 17.3 per cent to $339.2m, as imports of goods rose 1 per cent to $568m.
Compared to the previous month, the trade deficit declined 15.7 per cent on an increase in exports and a fall in imports. Overseas shipments rose 4 per cent while imports were down 4.9 per cent.
Gold exports drove the decline in total goods exports with none recorded for January — a result of exporters protesting new taxes targeting the commodity — compared to shipments worth $170.8m a year ago; Adjusting for that outlier, by excluding gold exports, goods exports rose 41.5 per cent year on year. The growth in total exports sans gold was mainly due to a rise in exports of coffee, beans, base metals and products, and industrial products transacted through informal cross border trade.
On a monthly basis, the rise in goods exports was a result of an increase in maize, cotton, sugar, and beans exports.
The annual growth in goods imports followed a 70.7 per cent increase in petroleum products to $104.5m. Non-oil imports fell 5.6 per cent on a decrease in imports of mineral products.
