Uganda’s economy expanded by 8.5% in the quarter ending December 2025, a significant acceleration from the 5.4% growth recorded in the same period a year earlier. The Ministry of Finance attributed the surge to robust consumer demand and increased activity across the construction and industrial sectors.
According to the latest data from the Ministry, the quarterly performance highlights a strengthening recovery in domestic consumption. Higher household spending and a rebound in private sector investment have provided a substantial cushion against global economic headwinds.
The construction sector emerged as a primary driver of the growth trajectory. Increased infrastructure projects and a rise in residential development contributed to the sectoral uptick, alongside steady performance in other service-related industries.
Analysts note that the 3.1 percentage point jump from the previous year’s corresponding period reflects a transition from post-pandemic stabilization to organic expansion. The high activity in capital-intensive sectors like construction suggests improved liquidity and investor confidence within the East African nation.
The Ministry’s report indicates that this momentum is expected to influence broader macroeconomic indicators, including employment and regional trade volumes, as the country enters the first half of 2026.
