Uganda’s economy grew strongly in 2019, estimated at 6.3%, driven mainly by expansion in services. Services growth averaged 7.6% in 2019 and industrial growth averaged 6.2%, driven by construction and mining. Retail, construction, and telecommunications were also key economic drivers. In addition, headline inflation for 2019 remained moderate on average at 3% while the Composite Index of Economic Activity (CIEA) maintained an upward trajectory implying an improvement in overall economic activity.

In 2019, government spending continued to increase, supported by public infrastructure and capital investments for the nascent oil and gas industry. Expenditures grew faster than domestic revenues, widening the budget deficit in 2019. The deficit was largely financed by external borrowing, supplemented by domestic securities. Despite the widening deficit, Uganda remained rated at low risk of debt distress, although the country’s debt has risen to about 43.6 percent of GDP, up from 25 percent in 2012, raising concerns over the medium term.