Uganda’s trade deficit continues to decline
This improvement was driven by a 72.1% growth in export earnings, which more than offset a 30.4% increase in the import bill recorded in April 2025.
Finance minister Matia Kasaija. (File photo)
By Umaru Kashaka
Journalists @New Vision
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Uganda’s trade deficit with the rest of the world has continued to decline, according to the latest official figures.
The Ministry of Finance’s Performance of the Economy report for May 2025 shows that the deficit fell by $177.06 million (about sh636.5bn), from $303.91 million in April last year to $126.85 million in April this year.
This improvement was driven by a 72.1% growth in export earnings, which more than offset a 30.4% increase in the import bill recorded in April 2025.
Similarly, on a month-on-month basis, the trade deficit narrowed by $86.77 million (40.6%), spurred by a 23.5% rise in export earnings, which outpaced the 11.2% increase in imports over the same period.
A trade deficit occurs when a country’s imports exceed its exports, meaning it spends more on foreign goods than it earns from selling its own, placing strain on the economy.
At the regional level in April 2025, Uganda registered trade surpluses with the Middle East, European Union, and the Rest of Europe, amounting to $304.00 million, $158.85 million, and $4.25 million, respectively.
However, the country recorded trade deficits with the rest of Africa ($250.14 million), Asia ($217.54 million), and the East African Community ($127.05 million).