Uganda’s economy showed signs of resilience in July 2025, with improved business sentiment, lower inflation, and stronger export performance, according to the latest economic indicators.
High-frequency indicators such as the Purchasing Managers’ Index (PMI) and the Business Tendency Index (BTI) pointed to continued recovery in economic activity and growing confidence among businesses.
Annual headline inflation eased to 3.8 percent in July from 3.9 percent in June, driven by a decline in food crop inflation, which dropped to 3.2 percent from 4.7 percent.
Core inflation also edged down to 4.1 percent from 4.2 percent over the same period.
The Ugandan Shilling appreciated by 0.5 percent, trading at an average mid-rate of Shs 3,586.57 per US dollar in July compared to Shs 3,605.84 in June.
The Ministry of Finance attributed this performance to strong foreign exchange inflows from offshore investors, remittances, and coffee export receipts, coupled with coordinated fiscal and monetary policies.
Meanwhile, merchandise exports surged from USD 702.5 million in June 2024 to USD 1.15 billion in June 2025. The rise was largely driven by increased earnings from coffee, mineral products, tea, fish, and flowers.
