Economic growth prospects remain strong, supported by infrastructure investments and agriculture and services sector growth, but GDP per capita is still very low. Decision-making processes remain highly centralized, which reduces policy credibility. The nonfunded International Monetary Fund (IMF) program acts as a policy anchor. Although moderating, the twin deficits are sizable and external debt accumulation is rising. Uganda has moderate levels of net general government debt stock and monetary policy credibility is relatively better than peers. The outlook is stable because we expect Uganda's fiscal and external metrics to remain broadly in line with our forecasts over the next year. Our base-case expectation is that the Ugandan government will generally stay on track with the requirements of its nonfunded IMF
