The Ugandan economy showed resilience in June 2025. The Ugandan Shilling appreciated by 1.3% against the US Dollar. The Ministry of Finance, Planning, and Economic Development released the Performance of the Economy Report, which highlighted this positive trend.
In June, the Shilling traded at UGX 3,605.84/USD, up from UGX 3,653.40/USD in May. Increased dollar inflows from exports and Foreign Direct Investment (FDI) helped drive the appreciation. As a result, the Shilling gained strength, reflecting the country’s growing economic stability.
Trade Deficit Narrows, Export Earnings Surge
Uganda’s trade deficit narrowed by 15.2%, dropping to USD 110.85 million in May 2025, compared to USD 130.67 million in May 2024. This improvement came from higher export earnings, which grew faster than import growth.
Exports increased by 36.8%, reaching USD 1,198.86 million, compared to USD 876.40 million in May 2024. The increase mainly resulted from higher revenues in coffee, cocoa, and mineral products. These sectors confirmed Uganda’s strong position in global commodity markets.
Business Outlook Remains Positive
In addition, economic activity indicators for May and June 2025 showed improvement. The Business Tendency Index (BTI) remained above 50 in June, signaling positive business sentiment about the economy’s performance.
As a result, the report suggests that Uganda is on a steady path of recovery. The economy benefits from strong exports, rising foreign investment, and business confidence. These factors point to continued growth and stability of the Ugandan economy
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