KAMPALA, June 18 (Xinhua) -- Bank of Uganda Governor Emmanuel Tumusiime-Mutebile warned on Tuesday that the country's economy faces risks due to continued unresolved trade tensions which are affecting global and domestic trade and investment activities.
"Elevated political and policy uncertainty in the global economy in an environment of limited policy space could weight further on global growth and subsequently on Uganda's economic growth," Mutebile told reporters here.
He added that the escalating global trade tensions could weaken Uganda's external position and lead to volatility in the domestic foreign exchange market.
On the domestic scene, the governor said weather-related constraints to agricultural production, delays in the implementation of public investment programs and supply side constraints to growth in the private sector could dampen economic activity.
The bank projected that over a two-to-five years horizon, real economic growth is forecast to be in the range of 6.5 percent to 7 percent, supported by strengthening private sector activity, foreign direct investment, public infrastructure investment and a pick-up in the extractive sector activities.
