Uganda’s macroeconomic environment remained stable during the recent general elections and the immediate post-election period, with government projecting economic growth of 6.6 percent for the 2025/26 financial year, according to a statutory post-election fiscal update.
The report, issued under the Public Finance Management Act (PFMA) Cap 171, is required to be published within four months after a general election to assess economic performance and fiscal stability.
According to the update, most macroeconomic indicators remained unchanged from pre-election estimates, suggesting continuity in economic performance despite the political transition.
The domestic economy was described as resilient even as the global economy continues to face subdued growth, geopolitical tensions and volatile commodity prices.
Government said inflation remained low and stable, while Uganda’s external position improved, supported by higher export earnings, tourism inflows, foreign direct investment and remittances from Ugandans abroad.
Officials said these trends reflect sustained economic activity and continued implementation of key national development programmes, including the Fourth National Development Plan (NDP IV).
The plan focuses on increasing household incomes and improving living standards through targeted investments in productive sectors.
The report also aligns with government’s long-term Tenfold Growth Strategy, which aims to expand Uganda’s economy to $500 billion by 2040 through industrialisation, infrastructure development and human capital investment.
Speaking on the findings, Permanent Secretary and Secretary to the Treasury Ramathan Ggoobi said the conclusion of the electoral cycle provides an opportunity to strengthen fiscal policy and accelerate economic transformation.
He said government will focus on improving efficiency in public spending and boosting productivity across key sectors.
“The successful conclusion of the general elections gives the country an opportunity to continue strengthening the efficiency and effectiveness of fiscal policy to increase productivity and speed up socio-economic transformation,” Ggoobi said.
He added that government will prioritise investment in agro-industrialisation, tourism, mineral development including oil and gas, and science, technology and innovation, commonly referred to as the ATMS strategy.
According to Ggoobi, the Parish Development Model (PDM) will also remain central to government efforts to transition households into the money economy and reduce poverty at community level.
He said government remains mindful of fiscal and debt sustainability, noting that future policy direction will focus on strengthening domestic revenue mobilisation and improving accountability in public expenditure.
“As we continue to set the economy on a tenfold growth trajectory, we are mindful of fiscal and debt sustainability,” he said, adding that government will pursue “self-sustaining and inclusive growth.”
The update indicates that high-frequency economic indicators show continued strengthening of domestic economic activity, particularly in the third quarter of the financial year.
Analysts say post-election fiscal updates are designed to reassure investors and development partners of macroeconomic stability and policy continuity following national elections.