Global economic conditions
The global economy expanded by 3.8 percent in 2017, and the International Monetary Fund (IMF) forecasts that growth will reach 3.9 percent in 2018. Among the advanced economies, growth in the United States is expected to strengthen to 2.7 percent in 2019, underlined by substantial fiscal stimulus together with already robust private demand In the Euro area, which is the second largest destination for Ugandan exports (Chart 2), the gross domestic product (GDP) growth increased from 1.8 percent in 2016 to 2.3 percent in 2017.
However, wider sovereign spreads and tighter financial conditions in the wake of recent political uncertainty are expected to weigh on domestic demand in the Euro area.
Annual Growth GDP for selected economic regions (%)
