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Showing posts from January, 2015

Uganda Will Likely See Inflation Rise in 2015: EPRC Researchers Predict

Corti Paul Lakuma and Musa Mayanja Lwanga   Uganda might be looking at good news in 2015: The country’s gross domestic product (GDP) is projected to grow at 6.2 percent. Ugandans might not want to celebrate yet, though: Despite this favorable forecast, Uganda faces three major obstacles that will likely raise inflation, which in turn will cause a depreciation of the shilling as well as rising interest rates. In fact, in 2015, inflation is projected to grow to 5.4 percent from 4.5 percent. Uganda’s economy will likely see bad times this year unless these major challenges are tackled head-on. Uganda Will Likely See Inflation Rise This prediction of rising inflation is based on several factors in the upcoming year. These include: Expected  government borrowing and expenditure on non-productive activities  such as the presidential and parliamentary elections to be held the following year. Supply-side constraints.  Businesses are cutting back the supply of essential commodities su