The Ugandan economy continued to show signs of resilience and growth in June 2025, with the Ugandan Shilling appreciating by 1.3% against the US Dollar, according to the latest Performance of the Economy Report released by the Ministry of Finance, Planning and Economic Development.
The Shilling traded at an average mid-rate of UGX 3,605.84/USD in June, up from UGX 3,653.40/USD in May.
This appreciation was largely driven by increased dollar inflows from exports and Foreign Direct Investment (FDI).
Trade Deficit Narrows, Export Earnings Surge
Uganda’s trade deficit with the rest of the world narrowed by 15.2%, declining to USD 110.85 million in May 2025, from USD 130.67 million in May 2024.
The improvement was underpinned by a significant increase in export earnings, which outpaced growth in imports.
Exports rose sharply by 36.8% to USD 1,198.86 million, compared to USD 876.40 million in May 2024.
The report attributes this growth mainly to increased revenues from coffee, cocoa, and mineral products, reaffirming Uganda’s strong performance in key commodity sectors.
Business Outlook Remains Positive
High-frequency indicators of economic activity for May and June 2025 reflected a general improvement in the level of economic activity.
The Business Tendency Index (BTI) remained above the neutral 50-mark threshold in June, signaling continued positive sentiment among businesses about the state of the Ugandan economy.
This latest report paints a picture of an economy on a steady recovery path, boosted by robust exports, foreign investment, and strong business confidence.