World Bank’s latest outlook on Uganda shows that the country’s Gross Domestic Product (GDP) growth rate is projected to rise from 6% in the financial year 2018/19 to 6.5% in 2019/20.

The report also states that public and private investments are expected to drive up much of the growth, according to the 13th Edition of the Uganda Economic Update.

“Given the improved outlook, the projection for FY19/20 is slightly above the forecast of 6.4 percent growth that was made in the November 2018 Uganda Economic Update.

The pick-up in growth will largely be driven by intensified public and private investments in energy projects, industrial parks, preparation for oil production, and continued expansion of IT infrastructure,” the outlook shows.

According to the report, the scale-up in investments is expected to catalyze a rise in consumption, as the bulk of investments support more rapid growth in construction and services.

The projection, however, will depend on favorable weather conditions, continued strong external demand, and further growth in foreign direct investment inflows as oil production draws closer.

The report further states that the growth rate is projected to deteriorate slightly in the financial year 2020/21 due to the general elections, as heightened political activity and uncertainty could lead to a drop-in investment and economic activity.