The Ugandan economy exhibited remarkable resilience and accelerated growth in the financial year ending June 2025, with real Gross Domestic Product (GDP) expanding by 6.3%, up from 6.1% in the previous fiscal year. This performance, confirmed by the Uganda Bureau of Statistics and the Bank of Uganda’s (BoU) own assessments, underscores a broad-based recovery driven primarily by a resurgent agricultural sector and a firmer industrial rebound.
The agricultural sector, a cornerstone of Uganda’s economy, posted a significant growth of 6.6% in FY 2024/25, a substantial increase from the 5.6% recorded in FY 2023/24. This surge is largely attributed to continued government support channeled through the Agricultural Credit Facility (ACF), administered by the BoU. The facility has enabled farmers and agribusinesses to access affordable financing for improved inputs, mechanization, and agro-processing, thereby enhancing productivity and value addition across the agricultural value chain.
Similarly, the industrial sector demonstrated vigorous growth, expanding by 7.0% compared to 5.5% in the prior year. This performance was bolstered by the BoU’s Small Business Recovery Fund (SBRF), which provided low-interest working capital to small and medium enterprises engaged in light manufacturing and agro-processing. The services sector also maintained steady activity, contributing to the overall positive economic outlook.
On the expenditure side, GDP growth was underpinned by stronger aggregate demand. Final consumption expenditure grew robustly by 10.3%, a significant leap from 2.5% in FY 2023/24. Government expenditure was particularly strong, growing by 29.4%, while household spending rose by 8.2%, indicating improved consumer confidence and purchasing power. Gross fixed capital formation also strengthened, expanding by 8.1%, signaling increased investment in the economy.
Governor Michael Atingi-Ego, in his statement, linked this growth to a “relatively stable macroeconomic environment,” supported by effective coordination between monetary and fiscal policies. The low and stable inflation environment safeguarded consumers’ purchasing power and anchored investor confidence, leading to increased investment despite an uncertain external environment.
The outlook for the medium term remains optimistic. Real GDP growth is projected at 6.0–6.5% in FY 2025/26 and is expected to average around 8% over the next five years. This projection is underpinned by sustained prudent monetary policy, targeted government initiatives, rising agricultural output, and increased investment in the extractive industry, particularly oil. However, the BoU cautions that this outlook is subject to downside risks, including falling commodity prices, global supply chain disruptions, and adverse weather conditions.
The 6.3% growth figure positions Uganda as one of the faster-growing economies in the East African region, reflecting successful policy interventions and growing investor confidence in the country’s economic prospects.
