Uganda Economic Structure
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Uganda Economic Structure: GDP Composition
Uganda’s economic structure is the result of its heavy reliance on agriculture, coffee being the most important export commodity. The country is adequately endowed with natural resources as well, such as fertile soils, sufficient rain and adequate mineral deposits of copper, gold and cobalt. The recently discovered oil resource has also made a significant contribution to the economy.[br]
Uganda Economic Structure: GDP Composition
The GDP of Uganda stood at $42.18 billion according to the 2009 figures, which is an improvement from the 2008 level of $40.56 billion and the 2007 GDP of $37.45 billion. Over the last three years, Uganda’s GDP Purchasing Power Parity stood at:
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$42.18 in 2009
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$40.56 in 2008
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$37.45 in 2007
The GDP per capita in the past three years was follows:
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$1,300 in 2009
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$1,300 in 2008
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$1,200 in 2007
The Ugandan economy is one of the few African economies to have a balanced GDP composition. The agricultural sector shows a marked disparity when the work force involved is compared to the sector’s contribution to the GDP. The sector employs 82% of the labor force but contributes only 22.2% of the GDP growth. On the contrary, the industrial sector recruits only 5% of labor but adds 25.1% to the annual GDP. The service sector of the Ugandan economy is in a transitional phase of development. The sector employs 13% of the working population and contributes 52.8% to the GDP growth.
Uganda Economic Structure: Business Environment
The Ugandan government, led by Museveni, took some very crucial steps to facilitate economic rehabilitation in early 1986. Uganda’s infrastructure, especially its transport and communications systems, were ravaged due to war and neglect, and is being rebuilt now. The need for international support had led Uganda to negotiate a policy with the IMF as well as the World Bank in 1987.[br]
Subsequently, the country implemented economic policies to restore its price stability and balance of payments, enhance capacity utilization and restore producer incentives via proper price policies. The policies also aimed to improve infrastructure, recover resource mobilization and distribution in the public sector. All policies exhibited positive results, especially as it helped in reducing inflation from 240% in 1987 to 42% in June 1992, to 5.4% for the 1995-96 fiscal years to 7.3% in 2003.
