Uganda's economic growth is now expected to range between 6.5% and 7% in the financial year beginning July, the finance ministry said on Thursday, sharply lower than the 10.4% forecast issued in December. Reuters reported the ministry did not provide an explanation for the revision.

The earlier projection had anticipated stronger expansion, driven by the start of oil production in Uganda's western reserves. The country plans to begin extracting crude from fields operated by France's TotalEnergies and China's CNOOC, Reuters added.

The ministry shared the updated forecast via a post on the X platform late Thursday, marking the first official revision since the December budget statement.