Uganda’s economy ended 2025 on a strong footing, largely buoyed by a sharp increase in exports—particularly coffee and gold—according to the Ministry of Finance.
In its Performance of the Economy Report for December 2025, the Ministry noted that export earnings rose significantly over the year.
“Export earnings grew by 70.4 percent, from USD 698.46 million (Shs 2.50 trillion) in November 2024 to USD 1.19 billion (Shs 4.26 trillion) in November 2025, on account of increased receipts mainly from coffee and gold exports,” the report stated.
The surge in exports played a key role in narrowing Uganda’s merchandise trade deficit, which declined by 32.4 percent—from USD 343.7 million (Shs 1.23 trillion) in November 2024 to USD 232.3 million (Shs 830.0 billion) in November 2025.
According to the Ministry, this improvement “was mainly attributed to stronger export growth, which contributed to the narrowing of the trade deficit.”
Economic activity across the country also showed steady expansion. The Purchasing Managers’ Index (PMI) rose to 54.0 in December 2025, up slightly from 53.8 in November, remaining firmly above the 50-point threshold that separates expansion from contraction.
Similarly, the Composite Index of Economic Activity (CIEA) continued its upward trend, increasing to 181.48 in November 2025 from 180.41 in October.
Business confidence remained positive, with the Business Tendency Index (BTI) rising to 57.20 in December from 56.20 in November, reflecting “growing optimism among business operators and investors,” the Ministry said.
Price stability was maintained, as annual headline inflation remained unchanged at 3.1 percent. This was “mainly due to a moderation in core inflation, particularly services inflation, which offset increases in food crops inflation and Energy, Fuel and Utilities (EFU) inflation.”
The Ugandan shilling also remained stable, trading at an average of Shs 3,575.23 against the US dollar in December.
The Ministry of Finance said the strong export performance, combined with stable inflation and rising business confidence, points to a resilient economy heading into 2026.
