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Abstract

The Uganda business climate has continued to improve for the second successive quarter. This implies that the conditions for doing business in Uganda are getting better. The current (January - March 2014) index is 113.4 points and is 16.4 percentage points higher when compared to the corresponding period last year (January - March 2013) when the index was 97.4 points. The annual improvement in the business climate was sustained by a stronger than expected consumer demand, stable macroeconomic environment characterized by low and falling inflation, stable exchange rates, and lower interest rates. In addition, the business environment was aided by stronger export demand for Ugandan products in both regional and international markets. However, perceptions and expectations for next quarter (April – June 2014) are downcast. Overall, results suggest that the business climate improved modestly but maintained a favourable sentiment. In addition, the business climate index indicates some modest improvements in job creation in the current quarter.

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