The world bank on Thursday nullified talks of the Kampala administration claiming that Uganda’s economy has transitioned and transformed into a middle-income status. The world bank has premised its nullification on a number of factors that Kampala skipped before declaring itself a middle income state.

SEE ALSO: Museveni to declare Uganda a middle income economy in today’s address

On June 7 while reading the state of the nation address speech at Kololo independence grounds, President Yoweri Kaguta Museveni Tibuhaburwa said Uganda had already hit above the bar to join her East African counterpart Tanzania in the league of Middle-income economies.

“…This means that the GDP per capita is $1046. We have now passed that figure of middle-income status ($1030),” Museveni said in a June 7 speech. “You need to sustain this for two to three consecutive years to be declared a middle-income country,” he emphasised.

Now, a World Bank 19th Economic Update released on Thursday shows that Uganda has not yet reached the Middle-income status as earlier pronounced by its head of state. The report findings indicate an increased food insecurity, subdued credit to the private sector, and low projections of growth in exports for the next Financial Year. These factors, the report says, are all working against Uganda’s economic development. The government has even been challenged to consider stronger social protection interventions.

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