Overview:
The Uganda Bureau of Statistics (Ubos) reports that the agricultural sector saw a 7.2% growth, with value added reaching Shs8.948 trillion.
Uganda’s economy has expanded significantly, reaching Shs39.535 trillion in the second quarter of the 2024/25 financial year, a 5.3% real Gross Domestic Product (GDP) increase compared to the previous year’s Shs37.604 trillion. This surge, fueled by robust agricultural and manufacturing sectors, signals strong investor confidence and potential job creation.
The Uganda Bureau of Statistics (Ubos) reports that the agricultural sector saw a 7.2% growth, with value added reaching Shs8.948 trillion. “The good performance in food crop growing activities was due to an increase in the production of bananas, maize, and beans,” explained Ubos, noting an 8% rise in food crop activities alone. Cash crops, boosted by vanilla and palm, also contributed with a 6.7% growth.
The industrial sector experienced even stronger growth, with an 8.4% increase, bringing its value added to Shs10.555 trillion. “This was mainly due to manufacturing activities, which grew by 7.6 percent… due to pharmaceutical products,” said Dr. Vincent F. Ssennono, deputy executive director of Ubos. He also highlighted a 5.9% growth in construction.
While the services sector grew by a more modest 2%, certain areas showed strength. “Trade and repair services grew by 8.6 percent… Transport and Storage activities also grew by 4.3 percent,” Dr. Ssennono noted. Additionally, taxes on products and subsidies increased by 9%, driven by higher import duties.
However, household spending declined. “In real terms, year-on-year consumption expenditure recorded a decline of 2.7 percent… attributed to household final consumption expenditure, which declined by 4.9 percent,” Dr. Ssennono explained.
Despite this dip in consumption, gross capital formation remained stable, with dwellings showing a slight increase. This overall economic expansion, driven by key sectors like agriculture and manufacturing, paints a positive picture for Uganda’s economic future, despite the consumer spending decrease.