By Uganda’s economy is projected to grow by 6% in the financial year 2025/26, driven by increased activity in oil and gas, agro-industrialization, and infrastructure development, the Ministry of Finance has announced.
Presenting the First Quarter Performance Report in Kampala, Ramathan Ggoobi, the Permanent Secretary and Secretary to the Treasury, said Uganda remains on a firm recovery path despite global economic challenges and a widening trade deficit.
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“The economy is strong, resilient, and growing. Our projections indicate a 6% growth rate this financial year, anchored on robust investments in the oil and gas sector, value addition in agriculture, and industrial development,” Ggoobi said.
He noted that key sectors such as manufacturing, services, and construction continue to perform well, supported by improved transport and energy infrastructure. The anticipated start of oil production is also expected to boost foreign direct investment and export earnings.
Ggoobi further highlighted that government initiatives like the Parish Development Model (PDM) and EMYOOGA programs are addressing household income gaps and fostering inclusive growth.
Despite the positive outlook, the Ministry cautioned that risks such as global commodity price volatility and climate-related shocks could impact performance if not mitigated. However, the government remains committed to macroeconomic stability, low inflation, and a competitive business environment.
Uganda recorded a 5.5% GDP growth in the previous financial year, supported by strong performance in agriculture and services. The Ministry expects this upward trend to continue as strategic projects near completion.
