Ramathan Ggoobi addressing the press
HABARI DAILY I Kampala, Uganda I Uganda is experiencing an improving international reserves position, a major sign that the economy is growing.
“The reserves shot up to $ 4.3 billion, which is equivalent to 3.8 months of imports as at June 2025 from $ 3.2 billion in June 2024,” said Ramathan Ggoobi, the Permanent Secretary, Ministry of Finance.
He further noted that the country is also experiencing increased Balance of Payments (BoP), with declining current account deficit.
Speaking during a press conference on the First Quarter Expenditure Releases For FY 2025/26, today, July 15, 2025, Ggoobi said the Ugandan economy is continuing to exhibit resilience and sustained growth in spite of the global uncertainties like trade wars, international conflicts among others.
“Growth averaged 6.9% in the first three quarters of the just concluded Financial Year,” he said, attributing the robust growth in GDP was on account of Government expenditure in PDM, growth in fixed capital formation, and recovery in household expenditure.
Ggoobi said that there was also growth in investments and exports. “The good performance of the economy is expected to continue in FY 2025/26. Real GDP growth is projected at 7% this FY 2025/26 and is expected to reach double digits in the medium term,” he said.
Shs 226.34 trillion increase
Ggoobi said that in nominal terms, the size of the economy increased to Shs. 226.34 trillion ($ 61.3 billion) in FY 2024/25, from Shs. 203.71 trillion ($ 53.9 billion) registered in FY 2023/24.
High-frequency indicators of economic activity have continued to show improvements in the performance of the economy.
“In the fourth quarter of FY 2024/25, the Purchasing Managers’ Index (PMI), which indicates business operating conditions, stood at 55.6. The the Composite Index of Economic Activity (CIEA), which monitors economic trends, was 178.58, while the Business Tendency Index, which provides insights into overall business climate was recorded at 59.17 in June 2025,” said Ggoobi, who is also the Secretary to the Treasury.
Low Inflation
Uganda’s annual headline inflation remained subdued and within the policy target of 5%. “Inflation was recorded at 3.9% in June 2025, a slight increase from the 3.8% recorded in May 2025.”
On the other hand, the Uganda Shilling has continued to strengthen against the US Dollar.
“During the month of June 2025, the shilling appreciated by 1.3% against the US Dollar. This was largely on account of improved export performance, increased remittances and offshore investments, as well as prudent macroeconomic management. The Shilling has remained one of the best performing currencies in Africa,” said Ggoobi.
He added that Uganda’s total export earning in Q3 of FY 2024/25 amounted to $ 2.6 billion. “This translates to a growth of 39.1% compared to export earnings of $ 1.9 billion recorded for Q3 FY 2023/24. It was as a result of improved volumes and international prices of some export commodities such as coffee and cocoa, which more than doubled between the two quarters,” he said.
He added that total exports of goods and services for the 12 months to March 2025 was $ 11.8 billion from $ 9.56 billion for the same period in 2024.
Similarly, the country’s import bill grew by 16.5% from $ 2.619 billion in Q3 of FY 2023/24 to $ 3.051 billion in Q3 of FY 2024/25. This was mainly driven by the formal non-oil private sector imports.
Consequently, due to higher growth in exports compared to imports, Uganda’s trade deficit with the rest of the world narrowed by 39.1% to $ 461.15 million in Q3 of FY 2024/25 from $ 757.48 million in the same quarter of the previous financial year.
FDI and remittances shoot up
According to Ggoobi, remittances for Q3 of FY 2024/25 were $ 304.48 million compared to $ 231.68 million recorded for Q3 of FY 2023/24.
“This implies an increment of 31.4%. Total remittances from Ugandans living and working abroad were $ 1.4 billion 12 months to March 2025, compared to $ 1.33 billion in the same period in 2024,” he said.
Uganda also continues to be a favourable destination for Foreign Direct Investment (FDI) in various sectors of the economy.
“In Q3 of FY 2024/25, FDI amounted to $ 785.79 million, a 26.3% increase from the $ 622.06 million registered in the same period of the previous year. Total foreign direct investments were worth $ 3.48 billion in twelve months to March 2025, compared to $ 2.99 billion during the same period in 2024.”
