Uganda trade deficit falls as exports jump

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Uganda’s trade deficit with the rest of the world narrowed by 15.2% in May 2025 after a major increase in export earnings.

The finance ministry performance of the economy report for June 2025 indicates that the deficit fell to $110.85 million in May compared to $130.67 million recorded for the same month last year.

“This followed a major increase in export earnings, which more than offset the effect of the increase in the import bill over this period,” the report says.

A trade deficit is when a country’s imports exceed its exports, meaning the country is not making money from trade and is inevitably in debt.

Export earnings were recorded at $1,198.86 million in May 2025, which was 36.8% higher than the $876.40 million recorded in the same period last year.

On the other hand, the import bill only increased by 30.1% from $1,007.08 million to $1,309.71 million.

Month-on-month comparison between May 2025 and April 2025 shows that export earnings increased at a higher pace compared to the import bill.

Whereas the export earnings increased by 6.9% from $1,120.98 million in April 2025 to $1,198.86 million in May 2025, the import bill increased by 6.0% between the two months, from $1,235.65 million in April 2025 to $1,309.71 million in May 2025.

At the regional level, Uganda exported merchandise worth $299.89 million and imported merchandise worth $405.56 million from the other East African Community (EAC) partner states during May 2025.

The value of total merchandise exports amounted to $1,198.86 million in May 2025, which is 36.8% higher than the 876.40 million recorded for the same month of the previous year.

As a result, the trade deficit between Uganda and the rest of the EAC was $105.68 million. This deficit was smaller than that registered in April 2025 as exports grew faster than imports between the two months, the report shows.