Election period didn’t destabilise economy, says Finance ministry

The law requires the Finance minister to publish a post-election economic and fiscal update within four months after polling day for a general election.

Uganda’s economy remained stable during the general election period and in the months that followed, according to the government’s post-election economic and fiscal update released under the Public Finance Management Act (PFMA), Cap 171.

The law requires the Finance minister to publish a post-election economic and fiscal update within four months after polling day for a general election.

According to the report, most macroeconomic indicators remained largely in line with earlier projections contained in the pre-election economic and fiscal update, despite a difficult global economic environment marked by subdued growth, geopolitical tensions and volatile commodity markets.

The report indicates that Uganda’s domestic economy has remained resilient, with economic growth for the Financial Year 2025/26 projected at 6.6 percent.

Government attributed the projected growth to continued strengthening in domestic economic activity, as reflected in high-frequency indicators during the third quarter of the current financial year.

The report also notes that inflation remained low and stable, while Uganda’s external position improved due to increased export earnings and sustained foreign exchange inflows from tourism, foreign direct investment and remittances.

“These developments are indicative of continued progress in implementation of the Fourth National Development Plan (NDP IV), which focuses on increasing household incomes and improving the quality of life of Ugandans,” the report states.

Government further linked the economic outlook to its Ten-Fold Growth Strategy, which targets expanding Uganda’s economy to 500 billion dollars by 2040 through investments in productive sectors, infrastructure and human capital development.

The Permanent Secretary and Secretary to the Treasury, who is also acting Finance minister, Ramathan Ggoobi, said the conclusion of the elections presents an opportunity for government to strengthen fiscal policy efficiency and accelerate socio-economic transformation.

Dr Ggoobi said government would continue prioritising investments in agro-industrialisation, tourism, mineral-based industrial development including oil and gas, and science, technology and innovation under the ATMS strategy.

He added that the rollout of the Parish Development Model (PDM) would also remain a key focus area.

“As we continue to set the economy on a Tenfold Growth Trajectory, we are mindful of fiscal and debt sustainability. Therefore, Government will focus on improving domestic revenue mobilization and efficiency of public expenditure to achieve self-sustaining and inclusive growth,” Dr Ggoobi said.

The update comes at a time when many economies across the world continue to face pressure from rising debt levels, global supply chain disruptions and persistent geopolitical uncertainty. Uganda’s government has increasingly presented macroeconomic stability as evidence of resilience amid the challenging external environment.