FX.co ★ Uganda GDP Annual Growth Eases to 5.5% in Q2

Uganda's economy grew by 5.5% year-on-year in the second quarter of 2025, a slowdown from the previously revised growth rate of 8.4% in the first quarter, which had marked the strongest expansion since the third quarter of 2022. This reduction in GDP growth was largely due to a more modest increase in household consumption, which rose by 8.6% compared to 21.8% in the previous quarter, and government expenditures, which increased by 13.5% following a 35.1% rise. In contrast, fixed investment saw accelerated growth, climbing by 9.1% compared to 8.7%. External trade exerted a negative influence on growth, as exports expanded by 51.2%, lower than the import growth surge of 66.4%, compared to a decrease of 0.8% previously. Additionally, the growth in inventory changes decelerated to 7.6% from 9.0%. Seasonally adjusted, quarter-on-quarter GDP contracted by 0.7% in the second quarter, overturning a revised expansion of 3.5% in the first quarter.