economy 10 July 2026 Uganda Investment Authority
Uganda's Economy Shows Robust Growth with Positive Investment Outlook
Uganda's economy is demonstrating strong performance with an optimistic outlook for the coming financial year and medium term, characterized by accelerating growth, controlled inflation, and a stable currency. Significant increases in exports and investor confidence are key drivers of this trend. Source: https://ugandainvest.go.ug/ugandas-economic-performance-remains-robust-with-optimistic-investment-and-business-outlook-psst
Uganda is experiencing a period of robust economic performance, with a positive outlook projected for the financial year 2026/27 and beyond. Dr. Ramathan Ggoobi, Permanent Secretary and Secretary to the Treasury, highlighted that the economy is not only growing steadily but also seeing accelerating growth rates. This positive trajectory is underpinned by effective policy coordination, strong export performance, and a notable rise in investor confidence.
The nation’s Gross Domestic Product (GDP) sustained its momentum in FY2025/26, achieving a real growth rate of 6.4%. This growth is attributed to a combination of increased aggregate demand and the successful implementation of government programs like the Parish Development Model (PDM) and support from the Uganda Development Bank. Projections indicate a significant acceleration to 10.2% real GDP growth in FY2026/27, fueled by anticipated oil production, ongoing investments in key sectors such as agro-industrialization and tourism, and improved public spending.
Inflationary pressures have been managed effectively, with annual headline inflation averaging 3.3% in FY2025/26. While there was a slight uptick in June 2026 due to global factors affecting transport and energy costs, overall price stability remains within the medium-term target of 5.0%.
The Ugandan shilling has demonstrated strength and stability, appreciating against the US dollar. This appreciation is supported by robust export earnings, increased remittances from Ugandans abroad, and sound macroeconomic management, making the shilling a top performer in the East African Community.
External sector performance has also been impressive. Foreign exchange reserves have strengthened considerably, now covering 4.0 months of import. Total remittances and export earnings have seen substantial increases, contributing to a significant Balance of Payments surplus – the largest in 15 years.
High-frequency indicators, including the Purchasing Manager’s Index and Business Tendency Index, consistently remain above the 50-point expansion threshold, signaling growing investor confidence and a generally positive business environment. This optimism is further boosted by political and economic stability, coupled with a healthy average return on investment.
Source: Uganda Investment Authority