Uganda’s Permanent Secretary for Finance and Secretary to the Treasury, Dr Ramathan Ggoobi, has said the country’s economy remains strong despite global and regional geopolitical tensions. He said the outlook remains positive, supported by strong demand, investment and exports.
Speaking during the fourth-quarter expenditure release for the financial year 2025/26, Ggoobi said preliminary estimates show the economy grew by 8.5 percent in the second quarter of FY 2025/26. This was higher than the 5.4 percent recorded in the same period of FY 2024/25. He added that average growth for the first half of the financial year rose to 6.7 percent, up from 5.8 percent during the same period last year.
Ggoobi said the performance was driven by strong aggregate demand and rising investment. He said production increased across industry, services, agriculture, forestry and fishing. He added that growth was also supported by foreign direct investment, particularly in oil and gas, agriculture, agro-industrialisation, tourism, mineral development, and science, technology and innovation.
He said other factors included political stability, peace and security, and a stable macroeconomic environment. Ggoobi added that the expected start of oil production later this year will further strengthen growth.
“By the end of June 2026, GDP is projected at 68.4 billion dollars (UGX251.4 trillion), equivalent to 194.2 billion dollars in Purchasing Power Parity (PPP) terms, while GDP per capita is projected at 1,399 dollars (UGX5.03 million) in June this year,” said Ggoobi.
He said the start of oil production is expected to push growth into double digits in the financial year 2026/27.
On the monetary side, Ggoobi said the Ugandan shilling has remained strong due to prudent economic management. He said this includes an open capital account, diversified exports, a liberalised foreign exchange market and an active foreign direct investment policy. He added that the government’s decision to import refined petroleum products directly from producers also supported the currency.
Ggoobi said the shilling is expected to remain stable despite mild depreciation pressures linked to speculation surrounding the conflict in the Middle East.
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