Browsing: @Ubos

Uganda’s economy expanded by 5.8 percent in the third quarter of 2025/26, driven by strong performance in services, construction, manufacturing and coffee production. But beneath the positive headline lies a more complex reality: household spending is falling, growth is slowing from the previous quarter and many families are yet to feel the benefits of the country’s economic expansion. The latest GDP figures reveal both progress and pressure—and raise important questions about who is benefiting from growth.

Uganda closed 2025 with inflation holding steady at 3.1 percent, offering policymakers a sense of stability. But behind the headline figure, rising food, fuel, education, and health costs are reshaping daily life for households. A closer look at the December 2025 CPI reveals why inflation feels uneven—and why 2026 may demand targeted policy action.

In Q4 2023/24, Uganda saw a modest 0.1% increase in outstanding commercial bank loans, reaching UGX 65.1 trillion, while the Construction Input Price Index (CIPI) rose by 1.7%, reflecting higher costs in the building sector. Notably, loans to the real estate sector declined by 1.0%, indicating shifts in the borrowing landscape. Meanwhile, water supply from the National Water and Sewerage Corporation (NW&SC) dropped by 1.1%, marking a change in utility demand.