Country: Uganda Source: World Bank Please refer to the attached file. Uganda Economic Update: Investing in Early Childhood Development for the Transformation of Human Capital in UgandaDespite ongoing global challenges, economic activity in Uganda has been robust and the economy remains buoyant, with real Gross Domestic Product (GDP) increasing to 6.1% in fiscal year 2023/2024 from 5.3% in the previous year, according to the new World Bank Uganda Economic Update: Investing in Early Childhood Development for Transformation of Human Capital in Uganda. This growth has been broad-based, with service and industrial sectors leading the way through gains in tourism, manufacturing, construction, and electricity production. Inflation decreased significantly — averaging 3.2% during fiscal year 2023/2024, below the central bank’s target of 5% — due to the lessening impact of global economic shocks, a tight monetary policy, and stable exchange rates.The Uganda Economic Update, now in its 24th edition, is a twice-yearly analysis of Uganda’s near-term macroeconomic outlook. It projects a positive picture with GDP growing slightly to 6.2% in fiscal year 2024/2025. When oil production starts, expected in late 2025/2026, and peaks at 230,000 barrels a day, it is likely to significantly boost growth in the medium-term. However, potential delays in oil production pose a serious risk to this outlook. Inflation is likely to remain close to the central bank target yet vulnerable to commodity price volatility, weather conditions, and exchange rate depreciation. Besides, the national debt could rise to 52% of GDP due to spending related to the 2026 elections.To achieve sustainable and inclusive growth, Uganda must focus more on domestic revenue mobilization to increase and protect required expenditures on human capital development, particularly in health and education, as highlighted in the 22nd and 23rd editions of the economic update.Human capital—the knowledge, skills, and physical health that enable people to be productive—is the key to long-term development. This 24th edition focuses on public investment in Early Childhood Development (ECD). By investing in the early years, ECD programs ensure children receive essential nutrition, healthcare, and education to become healthy, skilled, and productive adults.The economic update proposes three high-level recommendations and four investment priorities for ECD to the Government of Uganda.Recommendation 1. Commit to a pathway of increased, pro-equity public expenditure on ECD and harness development partner and private-sector contributions.Recommendation 2. Create incentives for quality service delivery and strengthen quality assurance, providing actionable data for decisionmakersRecommendation 3. Prioritize workforce development for ECD.The four investment priorities are: 1) expanded primary health care and nutrition services with a focus on underserved areas; 2) one year of publicly financed pre-primary education through government schools; 3) scale up homegrown and evidence-backed parenting and violence prevention programs; and 4) develop affordable childcare options for women in the informal sector with children under 3 years of age.