World Bank2014-06-242014-06-242014-06https://hdl.handle.net/10986/18731This is the fourth edition of the Uganda Economic Update series. As with previous editions, this update first provides information related to the current state of the economy before focusing on a particular subject of importance. The special focus of this issue concerns how pensions can reduce vulnerabilities at both individual and macroeconomic levels. The Ugandan economy has continued the process of recovery, growing by 5.9 percent during the first half of FY2013 and FY2014 amidst droughts, disruptions related to civil unrest in South Sudan, and aid cuts. Eight consecutive quarters of positive growth since the slump in FY2011 and FY2012 confirm that the economy has returned on the strong growth path and may reach a rate of growth of 6.0 percent per annum in FY2013 and FY2014. The positive outlook is subject to risks, key among which will be those emanating from its fiscal management regime due to continuous low revenue collection and reduction of aid to Uganda; increased spending pressures in the advent of the 2016 elections, and accelerating public investments amidst gaps in public investment efficiency. In addition, given its recently increased dependency on the South Sudan market for its exports, the protracted crisis in South Sudan could have severe consequences to the Ugandan economy. In that context, a coherent policy of social protection, including for the elderly, can promote social transformation and accelerate economic development. An effective social protection system is needed to protect vulnerable groups from negative shocks such as loss of employment, death of bread winner, or bad weather. Achieving the vision of a transformed Uganda means addressing vulnerabilities at both individual and at country levels. Uganda is already taking steps to start building an effective pension system, but challenges remain in ensuring transparent and proper governance of the pension funds; achieving efficiency objectives, building up the institutional capacity, and managing the fiscal pressures due to expenses to existing pensions and the new public pension scheme at the same time. Well designed and managed pension systems can contribute significantly to the country's ongoing transformation.en-USCC BY 3.0 IGOACCOUNTINGADVERSE EFFECTSALTERNATIVE INVESTMENTSARREARSAUDITSBALANCE OF PAYMENTSBANK RATEBORROWERBORROWING REQUIREMENTSBUSINESS ENVIRONMENTCAPITAL ACCOUNTCAPITAL EXPENDITURESCAPITAL GAINSCAPITAL MARKETSCENTRAL BANKCENTRAL BANKSCIVIL SERVICECOMMERCIAL BANKCOMMERCIAL BANK CREDITCOMMERCIAL BANKSCOMMERCIAL BORROWINGCOMMERCIAL LENDINGCOMMODITIESCOMMODITYCOMMODITY PRICESCONSUMER PRICE INDEXCORPORATE TAXESCREDIT GROWTHCREDIT RATINGSCURRENT ACCOUNT BALANCECURRENT ACCOUNT DEFICITCURRENT ACCOUNT DEFICITSDEBTDEBT LEVELDEBT LEVELSDEBT MANAGEMENTDEBT SOURCEDEBT STOCKDEMOGRAPHICDEMOGRAPHIC CHANGESDEPOSITDEPOSIT RATESDEPOSITSDEVELOPING COUNTRIESDISBURSEMENTSDIVIDENDDIVIDENDSDOMESTIC BORROWINGDOMESTIC CAPITALDOMESTIC CAPITAL MARKETDOMESTIC DEBTDOMESTIC ECONOMYDOMESTIC INTEREST RATESDOMESTIC MARKETDOMESTIC SECURITYECONOMIC CRISISECONOMIC DEVELOPMENTECONOMIC DEVELOPMENTSECONOMIC PERFORMANCEECONOMIC REFORMSEMPLOYMENTEQUIPMENTEXCHANGE RATEEXPENDITUREEXPENDITURESEXPORT MARKETEXPOSUREEXTERNAL BORROWINGEXTERNAL FINANCINGFINANCIAL CRISISFINANCIAL DEEPENINGFINANCIAL FLOWSFINANCIAL MARKETSFINANCIAL SAVINGSFISCAL BURDENFISCAL DEFICITFISCAL DEFICITSFISCAL POLICYFIXED INVESTMENTFOOD PRICEFOOD PRICESFOREIGN ASSETSFOREIGN CURRENCYFOREIGN DIRECT INVESTMENTFOREIGN EXCHANGEFOREIGN EXCHANGE RESERVESFOREIGN EXCHANGE TRANSACTIONSFOREIGN INTERESTFOREIGN MARKETSFRAUDGLOBAL MARKETSGOVERNMENT BORROWINGGOVERNMENT DEBTGOVERNMENT SAVINGSGOVERNMENT SPENDINGGROWTH RATEGROWTH RATESINCOMEINCOMESINFLATIONINFLATION RATEINFLATION RATESINFLATION TARGETINGINFLATIONARY PRESSURESINFRASTRUCTURE INVESTMENTSINFRASTRUCTURE PROJECTSINSURANCEINSURANCE COMPANIESINTEREST PAYMENTSINTEREST RATESINTERNAL CONTROLSINTERNATIONAL BANKINTERNATIONAL BEST PRACTICESINTERNATIONAL DEVELOPMENTINTERNATIONAL RESERVESINVESTINGINVESTMENT ALLOCATIONSINVESTMENT CAPABILITIESINVESTMENT GUIDELINESINVESTMENT MANAGEMENTINVESTMENT PROJECTSINVESTMENT SPENDINGISSUANCEISSUANCE OF GOVERNMENT SECURITIESLEVEL OF COMMITMENTLIBERALIZATIONLIQUIDITYLOCAL CURRENCYLOCAL ECONOMYLOCAL SECURITYLONG-TERM FINANCEMACRO-STABILITYMACROECONOMIC ENVIRONMENTMACROECONOMIC LEVELSMARKET INTERESTMARKET INTEREST RATESMARKET PRICESMDASMISMANAGEMENTMONETARY FUNDMONETARY POLICIESMONETARY POLICYMONEY MARKETNATURAL DISASTERSNATURAL RESOURCESNOW ACCOUNTSOIL RESERVESOIL RESOURCESOPEN MARKETOPEN MARKET OPERATIONSOUTPUTOUTSTANDING CREDITPAYMENT SYSTEMPENSIONPENSION ASSETSPENSION FUNDSPENSION LIABILITIESPENSION REFORMPENSION REFORMSPENSION SYSTEMPENSION SYSTEMSPENSIONSPOLICY RESPONSEPOLITICAL ECONOMYPORTFOLIOPORTFOLIO INVESTMENTPORTFOLIO INVESTMENTSPRICE VOLATILITYPRIVATE INVESTMENTPRIVATE INVESTMENTSPRIVATE PENSIONPRIVATE PENSIONSPRIVATE SECTOR CREDITPRODUCTIVE INVESTMENTSPRODUCTIVITYPUBLIC DEBTPUBLIC DEBT STOCKPUBLIC INVESTMENTPUBLIC INVESTMENTSPUBLIC PENSIONPUBLIC PENSIONSPUBLIC POLICIESPUBLIC SECTOR BORROWINGPUBLIC SPENDINGRATE OF GROWTHRATING AGENCIESRECURRENT EXPENDITUREREGULATORREGULATORY AUTHORITYREGULATORY FRAMEWORKREMITTANCESREPLACEMENT RATERETIREMENTRETURNREVENUE MOBILIZATIONSAFETY NETSCANDALSCANDALSSOCIAL DEVELOPMENTSOCIAL PROTECTIONSOCIAL SAFETY NETSOVEREIGN DEBTSTABLE LOCAL CURRENCYSUBSIDIARYSUPPLY SHOCKSTAXTAX CODESTAX COMPLIANCETAX EXEMPTIONSTECHNICAL ASSISTANCETELECOMMUNICATIONSTIMELY PAYMENTTRADE BALANCETRADINGTRANSPARENCYTRANSPORTTREASURYVALUE ADDED TAXESWATER SUPPLYWITHDRAWALWORLD ECONOMIES10.1596/18731