Uganda’s economy grew by 6.8% in the nine months leading to March 2025, up from 6.1% in the previous period. Strong performances in agriculture, manufacturing, and construction drove this growth, along with higher household and government spending. However, the services sector slowed down during the same period.
Annual core inflation fell to 4.0% in September 2025 from 4.1% in August. Lower food and fuel prices contributed to this decline. Favorable food supply, easing global energy costs, and a stable exchange rate also helped maintain price stability.
The Bank of Uganda kept the Central Bank Rate at 9.75% to anchor inflation expectations and support economic activity. Rising imports of goods and services are expected to keep the current account deficit elevated, despite strong export performance.
Looking ahead, the government expects the economy to grow by 7% in the 2025/26 fiscal year. Growth could accelerate to double digits once oil and gas production starts. At the same time, fiscal pressures and external shocks remain risks that need careful management.
