IMF reports 6.3% economic growth in Uganda, flags fiscal challenges

An International Monetary Fund staff team led by Jesmin Rahman concluded a post-financing assessment mission to Uganda, noting that the economy grew by 6.3% in the 2024/25 financial year, driven by broad-based activity. Inflation remained below the Bank of Uganda’s 5% medium-term target, while foreign reserves strengthened on the back of higher exports, capital inflows, and foreign exchange purchases by the central bank. However, the Fund observed a significant deterioration in Uganda’s fiscal position in FY2024/25 due to increased current spending, including one-off expenditures. The IMF said the country’s capacity to repay remains adequate despite potential risks from global financial uncertainty and domestic fiscal pressures. The IMF Executive Board is expected to consider Uganda’s post-financing assessment in January 2026.