Uganda’s merchandise trade deficit with the rest of the world fell to its lowest level in 35 months in January, helped by a sharp drop in imports of unrefined gold.
The Bank of Uganda said the gap between Uganda’s goods imports and exports shrunk 13.7 per cent year-on-year to $188.1mn, the smallest deficit since February 2021. The deficit has now narrowed for five consecutive months.
Merchandise imports rose 17.8 per cent to $753.5mn, their slowest growth in 11 months, while exports increased 34.1 per cent to $565.4mn.
The weaker growth in goods imports was the result of a decrease in non-petroleum mineral products, most of which is unrefined gold. These were valued at $73.7mn — an 11-month low — compared to $230.8mn in the previous month and $251.5mn in the month before that.
Merchandise exports also slowed, posting their softest growth in five months, due to a deceleration in gold exports. Outbound gold shipments increased by $182mn compared to the same month last year, down from an increase of $225.9mn in December.
