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Uganda's economy advanced by 5.5% year-on-year in Q2 2025, slowing from a downwardly revised 8.4% growth in the prior period, which was the fastest expansion rate since Q3 2022. The moderation in GDP growth was driven by softer increases in household consumption (8.6% vs 21.8% in Q1) and government spending (13.5% vs 35.1%), while fixed investment growth accelerated (9.1% vs 8.7%). Meanwhile, external trade weighed on growth, with exports growing by 51.2% (vs 26.2%) but less than imports, which surged by 66.4% (vs -0.8%). On the other hand, changes in inventories rose more slowly (7.6% vs 9.0%). Production-wise, output growth moderated for agriculture, forestry & fishing (3.5% vs 10.3%) and services (5.0% vs 8.7%). Meanwhile, industry activities grew faster (7.6% vs 7.4%). On a seasonally adjusted quarterly basis, GDP contracted by 0.7% in Q2, reversing from a downwardly revised 3.5% gain in Q1, marking the first quarterly contraction since Q1 of 2023.