Omicron casts uncertainty over Uganda’s economic outlook: central bank

Uganda’s central bank on Monday said the Omicron variant of COVID-19 is casting uncertainty over the country’s economic outlook.

Bank of Uganda, in a monthly monetary policy statement issued here, said the Omicron variant could further disrupt the global supply chain, which may have spillover effects, thus having a negative impact on the domestic economic performance.

The financial institution said that a third wave of the COVID-19 outbreak in the country could trigger a need for more stringent and protracted measures that would drag down the projected growth.

Contact-intensive sectors, like education and hospitality, could further face the brunt of the pandemic if the infection rate increases and containment measures are taken, the bank said.

The financial institution said if the government fully reopens the economy next month, as earlier promised, some of the pent-up domestic demand from the past two years would be released to stimulate economic growth.