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Uganda’s economy gains pace as consumer demand, construction drive growth

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Uganda’s economy is gathering momentum

Uganda’s economy is gathering momentum, underpinned by stronger household spending and a surge in activity across key sectors, particularly construction.

 

According to the Finance Ministry, the country recorded economic growth of 8.5% in the quarter ending December 2025, a notable increase from 5.4% during the same period the previous year.

 

The improved performance reflects rising consumer confidence and increased investment, with construction emerging as a major driver of expansion. Analysts say the sector has benefited from ongoing infrastructure projects and private sector development, helping to stimulate broader economic activity.

 

The latest figures point to a more resilient outlook for Uganda, as policymakers continue to focus on sustaining growth while managing external risks, including global economic uncertainty and commodity price fluctuations.

 

With domestic demand strengthening and key industries expanding, Uganda appears to be on a firmer growth path heading into 2026.

 

–ChannelAfrica–