Benin flag Benin: Economic outline

Economic Outline

Economic Indicators

For the latest updates on the key economic responses from governments to address the economic impact of the COVID-19 pandemic, please consult the IMF's policy tracking platform Policy Responses to COVID-19.

Benin’s strong macroeconomic fundamentals helped the country achieve one of the strongest growth rates among developing countries in 2020 (3.8%), despite the Covid-19 pandemic. Economic growth recovered in 2021, reaching an estimated 5.5%, boosted by public investment and the normalization of merchandise traffic at the Port of Cotonou (IMF). According to the IMF estimates, GDP growth should further accelerate to 6.5% in 2022 and 2023. Official Beninese forecasts set economic growth to 7% in 2022 and 7.8% in 2023. Growing coffee and cashew nut output as well as renewed dynamism of Benin's major overseas trading partners will also boost economic growth (The Economist Intelligence Unit).

In 2021, Benin’s economy recovered from the slowdown induced by the coronavirus crisis, thanks to the government’s swift response, a strong public investment push and the establishment of a sanitary belt around the cities most exposed to the pandemic (IMF). To fight the coronavirus crisis, Benin’s government set a recovery plan estimated at FCFA 74 billion (1% of the country’s GDP), aimed toward the most vulnerable households, and the companies operating in the most affected sectors (tourism, transportation, etc.). The country also benefited from emergency financing (USD 178 million), and general SDR allocation (USD 168 million) from the IMF. Falling revenues and increased expenditures caused the public deficit to widen to 6.5% GDP in 2021 (Benin Ministry of Economy and Finance). Fiscal consolidation efforts are expected to reduce the deficit (grants included) to 4.5% GDP in 2022 and 3.5% GDP in 2023 (Benin Ministry of Economy and Finance). Public debt reached an estimated 52.3% GDP in 2021, and is projected to decrease to 48.9% GDP in 2022 and 46.3% GDP in 2023 (IMF). Aggregate inflation remained subdued (3% in 2020 and 2021) but food prices increased sharply, reflecting both global factors and domestic weather events (IMF). Inflation rate is expected to decrease to 2% in 2022 and 2023 (IMF). Beninese authorities have requested a new IMF-supported program to facilitate the implementation of the national development plan. Among the priorities of the 2022 budget are the promotion of high-potential sectors such as agriculture, tourism and digital economy; the development of key transport, energy and sanitation infrastructure; the reduction of poverty and social vulnerability; and fiscal consolidation. The authorities have also revamped their vaccination strategy, as less than 4% of the population was fully vaccinated at the end of 2021.

Despite many efforts to reduce it, the poverty rate remains as high as 45.9% according to World Bank data. In 2020, the unemployment rate in the country was estimated at 2.5% (ILO estimate). However, underemployment rate stood at more than 70%, and informal employment rate at more than 90% (World Bank). 

 
Main Indicators 201920202021 (e)2022 (e)2023 (e)
GDP (billions USD) 14.39e15.67e18.0719.9221.84
GDP (Constant Prices, Annual % Change) 6.9e3.8e5.56.56.5
GDP per Capita (USD) 1,218e1,291e1,4471,5511,655
General Government Gross Debt (in % of GDP) 41.246.1e52.348.946.3
Inflation Rate (%) -0.93.0e3.02.02.0
Current Account (billions USD) -0.58-0.62e-0.72-0.85-0.97
Current Account (in % of GDP) -4.0-3.9e-4.0-4.3-4.4

Source: IMF – World Economic Outlook Database, 2016

Note: (e) Estimated Data

 
Monetary Indicators 20162017201820192020
CFA Franc BCEAO (XOF) - Average Annual Exchange Rate For 1 GBP 800.68749.15741.06732.50737.93

Source: World Bank, 2015

 

Return to top

Any Comment About This Content? Report It to Us.

 

© Export Entreprises SA, All Rights Reserved.
Latest Update: April 2022

Return to top