The Uganda economy picked up strongly in the second quarter of the year, driven by increased activity in the mining and quarrying sub-sector and the services sector.
Gross domestic product was 6.4 per cent higher in the period from April to June than a year earlier, and 5.2 per cent higher than in the previous three months, according to seasonally adjusted estimates released on Monday by the Uganda Bureau of Statistics. The annual rate recorded the fastest growth in three quarters, while quarter-on-quarter expansion was the highest in 11 quarters.
The services and industry sectors were the most robust components of the estimates over a one-year period, with output increasing by 8.6 per cent and 6.4 per cent, respectively. Mining and quarrying, which is part of industry, had the greatest impact on growth, surging 66.6 per cent. Additional areas of strong performance were accommodation and food service, trade and repairs, and construction.
Output in the agriculture, forestry, and fishing sector slowed down considerably, growing 1.8 per cent compared to 8.7 per cent in the previous quarter and 10 per cent in the last three months of 2022. This was mainly because of a falls in food crops and cash crops.
Expansion between the first and second quarters was driven by mining and quarrying, responsible for about one-third of total growth; financial and insurance services; and trade and repairs.
Overall, services rose 7.1 per cent from the previous quarter, industry was up 7.7 per cent, while agriculture, forestry, and fishing output fell 0.4 per cent.
