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Uganda: strong recovery set to weaken

Uganda’s strong recent economic recovery is facing domestic and external headwinds, including international condemnation of the government’s Anti-Homosexuality Bill – and the associated impact on financing and trade – and upcoming EU deforestation regulations. Together, these could put further pressure on the shilling and prompt tighter fiscal and monetary policy. That’s likely to lead to slower GDP growth this year and the economy’s longer-term prospects are also weakening.

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