Uganda’s economy closed 2025 on a positive footing, with key indicators pointing to stronger business activity, stable prices, and improved external trade, according to the Ministry of Finance’s Performance of the Economy Report for December 2025.
The ministry says economic activity continued to gain momentum in the months leading to December, driven by rising business confidence and favourable demand conditions. This was reflected in the Purchasing Managers’ Index (PMI), which climbed to 54.0 in December from 53.8 in November, staying well above the 50 mark that signals economic expansion.
A similar trend was recorded in the Composite Index of Economic Activity (CIEA), which rose to 181.48 in November from 180.41 in October, showing sustained growth across key sectors. Business sentiment also improved, with the Business Tendency Index (BTI) increasing to 57.20 in December, up from 56.20 in November, indicating growing optimism among investors and business operators.
Inflation remained under control, with annual headline inflation steady at 3.1 percent in December. The ministry attributed this to a slowdown in core inflation, especially in services, which helped offset rising prices for food, energy, fuel and utilities.
The Uganda shilling also remained stable, trading at an average of Shs3,575.23 against the US dollar in December, nearly unchanged from November.
On the external front, Uganda’s trade position improved significantly. The merchandise trade deficit narrowed by 32.4 percent, falling from USD343.7 million in November 2024 to USD232.3 million in November 2025, largely due to stronger export performance.
Export earnings rose sharply by 70.4 percent over the same period, from USD698.46 million to USD1.19 billion, mainly boosted by higher revenues from coffee and gold exports.
The Finance Ministry says the overall performance signals a resilient economy, supported by strong exports, steady inflation, and improving business confidence as the country heads into 2026.