KIU, Western Campus – The Bank of Uganda (BoU) has reported an improvement in economic activity since the easing of the lockdown imposed by the government to check the spread of COVID-19 in the country, according to its Monetary Policy Report for August 2020.
The Central Bank says that the economy had significantly slowed in Financial Year 2019/20, precipitated by the direct and indirect impacts of lockdown measures to prevent the spread of COVID-19 but that there are signs of recovery following the easing of the economy starting in June 2020.
“The month on month growth in the Composite Index of Economic Activity (CIEA) grew by 5.7 percent month-on-month in June 2020, indicating a pickup in economic activity relative to the contraction registered in the three months to May 2020,” the report reads in part.
“The Stanbic Bank Uganda Purchasing Managers’ Index (PMI) in July 2020 crossed into positive territory recording a reading of 50.31, up from the 46.5 in June 2020. This level is considered significant when compared to the 21.6 that was recorded in April 2020, amidst the lockdown,” it adds.
The report also says that this improvement in economic activity indicates improvements in the business environment as the national containment measures regarding movement and operating most business activity begun to be eased in June 2020.