________________<\/p>\n
Uganda\u2019s economy continues to demonstrate strong performance and resilience despite shifts in the global economic environment and the pressures typically associated with an election year, the Permanent Secretary and Secretary to the Treasury (PSST), Dr Ramathan Ggoobi, has said.<\/p>\n
Speaking during a press conference on the Third Quarter Expenditure Releases for FY2025\/26 on Friday, Ggoobi said the country\u2019s growth trajectory remains firmly positive, underpinned by prudent macroeconomic management and strategic Government interventions. “Key economic indicators point to sustained momentum in growth, going forward.”<\/p>\n
According to Ggoobi, Gross Domestic Product (GDP) growth stood at 6.3 percent in FY 2024\/25 and is projected to rise to between 6.5 and 7 percent in the current financial year, with double-digit growth expected in the medium term.\u00a0\u00a0The average economic growth for Africa is 3.9%.<\/p>\n
\u201cAs a result of this strong performance, the size of the economy is projected to increase to $68.4b, equivalent to sh249.4 trillion, this financial year,\u201d he said.<\/p>\n
He noted that inflation, which often spikes during election periods, has remained unusually stable.<\/p>\n
“Headline inflation held at 3.1 percent in both November and December 2025. This is uncharacteristic of an election year,\u201d he said, adding, \u201cIndeed, Uganda registered Africa\u2019s lowest inflation rate in the past decade.\u201d\u00a0<\/p>\n
He attributed this stability to \u201cGovernment\u2019s strategic investment in food production, effective monetary policy that has kept the shilling stable against major currencies, and the strategic decision for direct importation of fuel by UNOC, which together have stabilised prices.\u201d<\/p>\n
On the exchange rate, Ggoobi said the Uganda Shilling has remained strong and stable, particularly against the US dollar. \u201cThe shilling has appreciated by 2.45 percent in the year ending December 2025,\u201d he said, adding that \u201ccurrently, the Uganda Shilling is the most stable currency in the world, followed by the UK Pound Sterling and the Hong Kong dollar.\u201d<\/p>\n
External sector performance has also improved markedly. Exports of goods and services reached $13.4b in FY 2024\/25, with $10.6b earned from goods alone.<\/p>\n
Surplus hits $2.37b<\/p>\n
For the year ending November 2025, exports of goods stood at $12.79b. \u201cConsequently, Uganda registered a Balance of Payments surplus of $2.37b\u00a0for the year ending October 2025, from a deficit of $683m\u00a0a year ago,\u201d Ggoobi said. \u201cThis is the highest surplus recorded in the last 15 years.\u201d<\/p>\n
He explained that the surplus was supported by \u201can all-time high financial account surplus of $5.6b, driven by strong foreign direct investment and portfolio inflows.\u201d FDI rose to $3.5b, while portfolio inflows reached $1.7b\u00a0by October 2025.<\/p>\n
Remittances from Ugandans abroad increased to $1.6b\u00a0(sh5.76 trillion) in FY 2024\/25, up from $1.1b\u00a0in FY 2020\/21. Tourism also rebounded strongly, with earnings of USD $1.7b, driven by peace, competitiveness and Government investment in tourism infrastructure.<\/p>\n
Ggoobi further says that despite the election year, business confidence remains upbeat. \u201cHigh-frequency indicators show that business executives have maintained optimism,\u201d citing a Business Tendency Index of 57.2, a Composite Indicator of Economic Activity of 183.5, and a Purchasing Managers\u2019 Index of 53.8 as of November 2025.<\/p>\n","protected":false},"excerpt":{"rendered":"________________ Uganda\u2019s economy continues to demonstrate strong performance and resilience despite shifts in the global economic environment and…\n","protected":false},"author":2,"featured_media":13523,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[58],"tags":[9235,153,9234,9236,9237],"class_list":{"0":"post-13522","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-uganda","8":"tag-dr-ramathan-ggoobi","9":"tag-uganda","10":"tag-uganda-economy","11":"tag-uganda-gdp","12":"tag-ugandas-economy-to-grow-by-7"},"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/posts\/13522","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/comments?post=13522"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/posts\/13522\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/media\/13523"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/media?parent=13522"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/categories?post=13522"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/tags?post=13522"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}