Sunday, October 3, 2010

Decline in Exports

Random quote of interest: “We are seeing light at the end of a long and very dark tunnel. But for this light to be brighter, we need to sustain the emerging recovery,” said WTO director-general Pascal Lamy in Washington recently.

Uganda's total exports decreased from 2008 to 2009 by 9.1%. Of course we know that this is primarily due to the global economic crisis, however a bad crop season is also to blame for this. This 9.1% decrease in overall exports reflects some good and bad news for Uganda. First, the bad: traditional exports decreased by nearly 21% in the same time period. Luckily however, (the good), the service based sector of Uganda's economy has been on a steady rise, which has helped to balance out the deficit. Typically, as countries begin to move out of the poverty level and into a more advanced economic power, they begin to rely less on agriculture/exports for revenue and begin to transition in certain services to build up their economy. This is a good sign for Uganda. And what's more good news for Uganda: there has also been a steady increase in foreign investments which is also helping to transition in new markets.

By Brianna

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