Since the global financial crisis in 2008 and the subsequent Great Recession in industrialised countries, the global economic environment has become much less propitious for developing countries such as Uganda. The global economy has become more volatile and generates macroeconomic shocks which are transmitted to developing economies.
This means that we have to be more cautious in our approach to macroeconomic management and to build up buffers of resources – for example foreign exchange reserves – which can help us to ride out economic or financial shocks when they occur, as they inevitably will.