Uganda’s economy recorded continued improvement in June 2026, supported by stronger economic activity, increased private sector confidence, rising export earnings and a stable macroeconomic environment, according to the Ministry of Finance, Planning and Economic Development’s Performance of the Economy Report.

The report indicates that key high-frequency indicators of economic activity improved during the month, with both the Purchasing Managers’ Index (PMI) and the Composite Index of Economic Activity (CIEA) recording positive developments.

Private sector businesses remained optimistic about economic conditions, with the Business Tendency Index (BTI) staying above the 50-point threshold at 54.4 in June 2026.

The ministry attributed the continued optimism among businesses to improving expectations for both domestic and external demand, alongside a stable macroeconomic environment.

The Uganda Shilling strengthened against major international currencies during June 2026.

The currency appreciated by: 1.4 percent against the US Dollar, 2.8 percent against the Euro, and 2.6 percent against the British Pound Sterling.

The report said the appreciation against the US Dollar was largely supported by strong foreign exchange inflows from commodity exporters and offshore investors.

Uganda’s merchandise export earnings increased on an annual basis, rising by 12.8 percent to USD 1,346.12 million in May 2026, compared to USD 1,192.87 million in May 2025.

The growth in export receipts was mainly driven by increased earnings from gold, tobacco, oil re-exports and electricity.

However, export earnings declined slightly compared to the previous month. Receipts dropped by 4.2 percent from USD 1,405.14 million in April 2026, mainly due to reduced earnings from coffee and gold between April and May 2026.

The general price level of goods and services increased slightly in June 2026, with annual headline inflation rising to 3.7 percent from 3.2 percent in May 2026.

The increase was mainly driven by higher domestic fuel pump prices, which also contributed to price increases for some other goods and services.

The June 2026 economic performance report shows continued improvement in Uganda’s economic conditions, with stronger activity, improved business confidence, a stronger currency and higher export earnings supporting the outlook.

However, rising fuel prices remain a factor influencing inflation developments as the economy continues to monitor price pressures.