Citibank projects Uganda’s economic growth to hit 7-8% in 2026-2027, following the anticipated commencement of oil production in mid-2026. Growth for the current fiscal year is expected to be 6-6.5%. However, inflation may accelerate to 5.6% by the end of 2025, surpassing the central bank’s target of 5%, depending on global oil prices. The central bank, alongside other East African nations like Kenya and Rwanda, is cautious about easing monetary policy, concerned that rapid rate cuts could weaken exchange rates and increase inflation.