The Effect of Covid19 on the Ugandan Macroeconomy

Abstract

The purpose of this research study was to analyze the effects of Covid 19 on the Ugandan macro economy. The dependent variable was Uganda’s macroeconomy while the independent variable was Covid19 pandemic. Uganda’s macroeconomy was measured using macroeconomic indicators and these included; the country’s interest rates, exchange rates, business tendency indicator and price levels. The study used secondary data from Uganda Bureau of Statistics and Bank of Uganda from January 2020 to April 2020. A retrospective – prospective research design was used to basically analyze trends of these variables. The results indicated increase in the general price levels. The end period exchange rate of the Uganda shilling against the dollar increased in March 2020, the Central Bank rate reduced in April 2020 while the rediscount rate reduced. For the real sector, the business tendency indicator reduced in April 2020.  The study recommended that the government of Uganda considers the health sector priority, embarks on import substitution industrialization since the economy’s export base is low at the moment, encourage and support innovations for ideas and machinery that can be manufactured in Uganda rather than importing them, boosts the private sector by contracting when she makes her government procurements, uses Uganda Development Bank to issue low interest loans with a substantial grace period but with collateral security from borrowers.