Uganda’s global trade deficit increased in June 2024, widening to $247.9 million compared to the $92.58 million recorded in May. Data from the Ministry of Finance, Planning, and Economic Development, along with the Bank of Uganda, revealed that the sharp decline in exports was the main reason to this increase.
Despite a reduction in imports, the export sector suffered a bigger hit, with total merchandise exports dropping from $940.9 million in May to $718 million in June. The steep decline in mineral exports, from $494 million in May to $253 million in June, significantly impacted the balance.
However, excluding mineral products, total export earnings increased by 5.1%, rising from $446.85 million in May to $469.72 million in June, driven by higher coffee exports. Coffee exports rose to $162.36 million, up from $127.3 million in May, due to increased volumes and higher global coffee prices.
Performance of the Economy report for July 2024 stated, higher Robusta coffee yields from Greater Masaka and South Western regions, along with reduced supply from Vietnam and Indonesia, led to the growth in export volumes. A record 821,593 bags of coffee, valued at $210.5 million, were exported, marking the highest monthly total ever recorded.
In contrast, export earnings from other commodities such as cotton, tea, and fish saw declines.
Compared to June 2023, the trade deficit narrowed by 2.9%, decreasing from $255.38 million to $247.93 million in June 2024, reflecting a stronger rise in export earnings over the past year.
Italy remained Uganda’s largest coffee market, accounting for 41.96% of total coffee exports in June 2024. Other significant markets included Germany, India, Sudan, and Spain.
In terms of import sources, East Asia accounted for 34.6% of Uganda’s imports in June 2024, with China and India contributing 46% and 27.5%, respectively. Imports from the East African Community made up 19.5%, with Tanzania and Kenya leading as Uganda’s key suppliers.
Uganda recorded a trade surplus of $52.1 million with the European Union, $45.3 million with the EAC, and $14.1 million with the Middle East. However, trade deficits were noted with Asia ($205.4 million) and the rest of Africa ($137.76 million).
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