Uganda’s economy grows 8.5% in final quarter of 2025

Uganda’s economy grew 8.5 percent in the quarter ending December 2025, up from 5.4 percent a year earlier, according to the Finance Ministry.

The expansion was driven by strong consumer demand and increased activity across key sectors, particularly construction. Rising investment and ongoing infrastructure projects supported broader economic momentum, signaling improved business and consumer confidence.

The government also reported that a US$5 billion crude oil pipeline to Tanzania’s coast is about 80 percent complete. Authorities expect the project to boost exports and generate roughly 2.2 trillion Ugandan shillings (US$587 million) in revenue in the next fiscal year.

The latest data suggest a strengthening economic outlook, though policymakers remain cautious about external risks, including global uncertainty and commodity price volatility.

With domestic demand firming and industrial activity expanding, Uganda enters 2026 on a more stable growth trajectory.