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By Hon. Dr. Elly Karuhanga Private Sector Foundation Uganda (PSFU) has recently held several meetings with Government and development partners in an attempt to devise mitigation measures to contain the effects of COVID 19. These measures have been directly focused on curtailing infections, supporting testing, isolation, and treatment. Uganda has not recorded a single death resulting from this pandemic. The private sector appreciates government efforts in this regard. As PSFU and on behalf of the private sector we pledge to support all initiatives being outlined by both Government and the donor community in a bid to protect Ugandans from the…
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WASHINGTON, April 9, 2020—Growth in Sub-Saharan Africa has been significantly impacted by the ongoing coronavirus outbreak and is forecast to fall sharply from 2.4% in 2019 to -2.1 to -5.1% in 2020, the first recession in the region over the past 25 years, according to the latest Africa’s Pulse, the World Bank’s twice-yearly economic update for the region. “The COVID-19 pandemic is testing the limits of societies and economies across the world, and African countries are likely to be hit particularly hard,” said Hafez Ghanem, World Bank Vice President for Africa. “We are rallying all possible resources to help countries…
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By Dr. Sudhir Ruparelia We are entering into recession period globally and the exception is likely to be India and China with approximately 2% GDP growth in 2020 which is way below the 5% – 8% seen in the past several years. For the benefit of all, I am sharing my perspective on such a scenario on a few aspects as below: What will change during the slowdown? Spend on luxury will come down drastically; Long-term / Capital expenditure such as construction, technology will be almost cut to nil; Lifestyle expenditure such as salary, rent, infrastructure, entertainment will be minimised;…
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First of all, I would like to thank you and your cabinet- for the courageous leadership thus far- especially the decisions announced on March 18th 2020 which among others include the decision to temporarily disperse areas of population concentrations such as schools; religious, political and social gatherings, as well as travel restrictions on certain high risk countries. I do agree with you, that much as this may hurt the economy temporarily, it is necessary to shield the country from much bigger harm- should, God forbid Corona land in the country and, in your own words: “find plenty of dry grass…
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A day after the ministry of finance warned that COVID-19 related complications could borrowers from trade, tourism, transportation, and construction sectors experience difficulties in repayments, thus worsening banking industry non-performing loans from the current 4.7% to 5.9%, today, the central bank has weighed in with a promise to prop up banks with liquidity support amongst many other measures, should they require it. He, however, did not say where the central bank would be intervening to cut interest rates. In a statement released today, March 20th, 2020 by Prof. Emmanuel Tumusiime Mutebile, the Central Bank Governor, he said that although Uganda…
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The Uganda Minister of Finance, Planning and Economic Development has today told Parliament that Corona Virus Disease- COVID-19 will significantly affect Uganda’s economy, so much so that up to 2.6 million could sink bank into poverty depending on the severity of the disease. In his statement on the economic impact of COVID-19 on Uganda, presented to parliament today, Matia Kasaija, the Finance Minister said that the biggest impact will be on the services sector especially travel and tourism, including hotels and accommodation, adding that the resulting supply chain disruptions especially caused by travel restrictions will curtail import and export trade…
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Today, the government of Uganda released its first estimates of how deep COVID-19 could hurt Uganda’s economy. The figures released by Uganda’s Finance Minister, Matia Kasaija are based on two scenarios- namely; OPTIMISTIC SCENARIO: That the corona virus does not enter Uganda or that it is quickly contained hence avoiding widespread infections within the population. WORST-CASE SCENARIO: The “virus enters Uganda and spreads rapidly (as experienced in some African countries such as Egypt, South Africa and Algeria), in which case, the impact on the economy, the budget and the population would be significantly higher. Here below are some of the…
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