By Ambrose Gahene
Government has launched a new model that interlinks and makes calculation of various economic sectors; more accurate in the Gross National Product (GDP) and forecasting of economic growth and policy analysis.
The ministry of Finance says the new model is more comprehensive and is better than the one it has been using because it is holistic, unlike the former which was partially in nature.
In his presentation at Kampala Imperial Royal Hotel last week about the new model which been code named; “The Integrated Macroeconomic Model”, the commissioner macroeconomic policy in the ministry of Finance, Dr Albert Musisi, said over the years the economy has evolved and become sophisticated and thus required new analytical tools to deal with the new aspects of the economy.
Secretary to the Treasury Keith Muhakanizi, said the economy has become more sophisticated with many sectors that were not in included in the calculation of the GDP now contributing significantly to the country’s growth.
“If you take for example in 1986, there was no ICT, digital, oil and gas and all these have come in and compared to the past, and many others that have emerged that require new model of incorporating them in the calculation of GDP,” he said.
He further pointed out that over the years; there are many developments that have taken place in Uganda’s economy; that requires a more comprehensive model (tool or system) to match with the current developments in the economy which is more sophisticated.
“The use of this tool will be vital in ensuring the implementation of key legislation and key national visions and development plans; charter for fiscal responsibility 2016, East African Community Monetary Union 2022, and Public Finance Management Act 2015,” he added.