KAMPALA, Oct. 21 (Xinhua) -- Uganda's economy continues to show resilience amid global economic shocks and geopolitical uncertainties, the Ministry of Finance, Planning and Economic Development said Wednesday.
The ministry's Performance of the Economy Report for September 2026 said high-frequency indicators of economic activity and business sentiment pointed to continued economic growth, with output and demand improving since the start of the 2026/27 financial year on July 1.
The Purchasing Managers' Index (PMI) stood at 53.0 in September, above the 50-point threshold that separates expansion from contraction. The reading indicated improving private-sector business conditions, as firms continued to report increased output and new orders amid sustained customer demand, the report said.
The Composite Index of Economic Activity rose by 0.3 percent to 193.87 in August from 193.30 in July, reflecting an increase in economic activity over the previous month.
Business sentiment also remained positive, with the Business Tendency Index reaching 55.80 in September, above the 50-point threshold.
However, annual headline inflation rose to 4.6 percent in the year to September, up from 4.1 percent in the year to August, according to the report. The increase reflected higher prices across various categories of goods and services, driven by unfavorable weather conditions that affected food crop supplies. Higher transportation and energy costs, amid continued increases in international oil prices, further pushed up production costs.
Uganda's trade deficit with the rest of the world also widened by 151 percent to 817.03 million U.S. dollars in August 2026, from 325.53 million dollars in the same month of 2025.
The government is undertaking various initiatives to reverse this trend, including enhancing economic and commercial diplomacy through facilitating our missions and embassies abroad to promote our exports and tourism attractions while also sourcing investments into the economy, prioritizing value addition to export products through agro-processing and mineral development, the report said. ■