Uganda’s economic growth increased by 1.1% in fy2024/25 Q1

The Ugandan economy grew by 6.7% in the first quarter of fiscal year 2024/25.

According to the Ministry of Finance, Planning, and Economic Development, the growth rate for the same period in fiscal year 2023/24 was 5.6%.

The same source reported on Thursday that formal employment has also increased by 2.5%, from 846,489 employees in December 2024 to 868,280 in January 2025, citing Payee Register.

Employment growth is primarily driven by mining and quarrying, education, and public administration.

Henry Musasizi, State Minister for General Duties in the Ministry of Finance, presented the Ministerial Policy Statement for the fiscal year 2025/26 to the Parliamentary Finance Committee on March 27.

He was accompanied by Dr. Sengonzi Damulira, the Accounting Officer for the same Ministry.

Speaking about wealth creation funds, Musasizi stated that the parish revolving fund capitalization under the Parish Development Model is shs.2.728 trillion.

Of this, shs 2.286 trillion has been distributed to 2,272 beneficiaries. “This reflects a disbursement rate of 83.66%.”

Meanwhile, according to the Performance of the Economy Report for February 2025, the Uganda Shilling gained by 0.3% on average against the US dollar.

In February, the US dollar traded at an average mid-rate of shs3,677.7.

Despite an increase from 3.6% in January to 3.7% in February, annual headline inflation remained within the target range.

“The purchasing manager’s index increased to 52.6 in February 2025 from 49.5 in January,” said the Ministry of Finance.

“This signifies an improvement in business conditions.”

Uganda’s merchandise deficit with the rest of the world reduced by 24.4% month-to-month. The deficit fell from United States Dollar (USD318.90 million) in December 2024 to USD241.25 million in January 2025.

The above was on account of an increase in exports which “more than offset the increase in imports.”