Uganda flag Uganda: Economic outline

Economic Outline

Economic Indicators

For the latest updates on the key economic responses from governments to address the economic impact of the COVID-19 pandemic, please consult the IMF's policy tracking platform Policy Responses to COVID-19.

Uganda is the third-largest economy in East Africa, after Kenya and Tanzania. The country has achieved astonishing economic performances in the last decades and, although slower, growth remains sustained. Between 1992 and 2010, the country experienced average economic growth of 8%, GDP per capita tripled and the poverty rate was cut in half. In 2022, however, the economy grew 4.4%, mainly driven by private investment and consumption, as well as a recovery in wholesale and retail trade, real estate, education, construction, manufacturing. The economy is expected to continue growing in 2023 and 2024, at an estimated rate of 5.9% and 6%, respectively.

In 2022, the country's current account deficit widened to USD 3.8 billion, as the increase in export revenues linked to the recovery in activity following the initial shock of the pandemic was offset by dried up earnings from the tourism industry. Public debt increased to 52.1%, mainly due to interest on domestic debt, which will continue to weigh on public finances in the coming years. Still, the debt-to-GDP ratio should remain stable in 2023 and 2024, at around 51.3% and 51%, respectively. Inflation increased to 6.4% in 2022, and it should remain stable at 6.4% in 2023, before decreasing to 5.7% in 2024. To mitigate the effect of the pandemic, the World Bank has provided the country with USD 300 million, which has been essential in Uganda's economic recovery following the crisis. In 2022, recovery has strengthened throughout the country, underpinned by improved business and trading conditions as COVID-19 restrictions eased.

Uganda has surpassed the Millennium Development Goal (MDG) of halving poverty by 2015, but the poverty rate has recently increased. According to the World Bank, one in five people lives in extreme poverty and about a third live on less than USD 1.90 / day . These rates have been heightened by the pandemic, and added to the 8.7 million people living below the poverty line in Uganda. The crisis effect has been worsened by heavy rains, flooding, and a locust invasion that has impacted agricultural production. In 2022, the unemployment rate in the country was at 3%. However, this figure does not reflect reality since a significant part of the population work in the informal sector.

Main Indicators 20222023 (E)2024 (E)2025 (E)2026 (E)
GDP (billions USD) 48.2452.3957.9063.7569.48
GDP (Constant Prices, Annual % Change)
GDP per Capita (USD) 1,1031,1631,2481,3341,405
General Government Gross Debt (in % of GDP) 48.448.347.746.344.5
Inflation Rate (%) n/a5.
Current Account (billions USD) -3.97-3.71-4.75-6.57-6.36
Current Account (in % of GDP) -8.2-7.1-8.2-10.3-9.1

Source: IMF – World Economic Outlook Database, 2016

Note: (e) Estimated Data

Monetary Indicators 20162017201820192020
Uganda Shilling (UGX) - Average Annual Exchange Rate For 1 GHS 857.17830.05812.83718.62663.92

Source: World Bank, 2015


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Latest Update: December 2023