The Ugandan economy reported strong growth in 2019, estimated at 6.3%, largely driven by the expansion of services. Services growth averaged 7.6% in 2019, and industrial growth by 6.2%, driven by construction and mining. Retail, construction, and telecommunications were also key economic drivers. Moreover, Headline inflation for the year 2019 remained subdued averaging at 3% while Composite Index of Economic Activity (CIEA) kept an upward trajectory implying an improvement in general economic activity.
In 2019, Government spending continued to increase, underpinned by public infrastructure and capital investments for the nascent oil and gas industry. Expenditures increased faster than domestic revenues, widening the fiscal deficit in 2019. The deficit was largely financed through external borrowing, supplemented with domestic securities. Despite the rise in the deficit, Uganda remained classified at low risk of debt distress although the country debt reached an estimated 43.6% of GDP, up from 25% in 2012, raising medium-term concerns.