He added that credit flow is expected to gain momentum as banks get back to lending underpinned by the continued accommodative monetary policy stance.
However, he warns, on the downside that the unfavorable current account balance will continue to be a major risk to the currency.
Available data indicate that the current account deficit deteriorated to US$728.6 million during the three months ended October 2013 from a US$578.6 million deficit in the previous three months period. The surplus on the Capital and Financial account continues to finance the deficit on the current account, which increased to US$702.8 million in the three months ended October 2013.
Kaboyo says Uganda's fortunes in 2014 will also depend on the political stability in the neighborhood countries of Kenya, DR Congo and South Sudan, which have recently been threatened by civil strife and terror attacks.
Other analysts believe that the liquidity squeeze could also ease as politicians, come 2014, are likely to begin spending cash on preparing their political ground ahead of the 2016 polls. However, this will give Bank of Uganda a bit of headache as it will have to control money in circulation so that it doesn't cause high inflationary pressures like the situation was in 2011.
"But on a whole 2014 looks brighter," Kaboyo said. Stephen Kaboyo
Ana Lucía Coronel, the IMF mission chief and senior resident representative for Uganda, was also positive about Uganda's economic growth and recovery saying it will continue to gain momentum mainly driven by public investment, supported by appropriate policies.
Coronel said with the recovery of private sector activity and significant public investment in the construction of two large hydropower plants and road projects, growth is expected to rise to over 6.2% in 2013/2014.
She added that BoU's monetary policy stance is likely to keep core inflation within the expected 5% medium-term target.
Coronel credits actions taken to improve public financial management practices, including the first phase of implementation of a treasury single account and the upgrading of key accounting systems. These measures will boost growth of Uganda's economy, she says, but only if fiscal discipline is maintained.