Benin: Economic Outline

Economic Indicators

The economic crisis had a significant impact on the Benin economy. The growth rate fell from 5% in 2008 to 2.5% in 2009 and remained weak in 2010, reaching 2.8%. The country’s weak performance, compared to the other UEMOA (West Africa Economic and Monetary Union) countries), is due to its great susceptibility to external economic shocks (especially the drop in the Nigerian demand). Mid-term economic perspectives are nonetheless relatively good, given that the economic recovery should turn out to be more dynamic in the coming years. The country's economic growth is driven by trade and investments, and is sustained by development aid.

In the context of slow economic recovery, Benin asked the IMF for a new three-year accord (2010-2013) as part of the Extended Credit Facility framework. Maintaining debt sustainability and public finances, as well as improving the external competitiveness of the country are considered essential. The country should increase investment in infrastructure, limiting non-priority public spending and accelerate structural reforms. The structural reform program is aimed at increasing revenue mobilization, improving the management of public finances and reforming the civil service and privatize public utility companies.

Dependence on energy resources from neighboring countries could present a problem. Corruption, bad management, vulnerability related to commodity prices and the rapid growth of the population are major hindrances to the country's growth.

Benin remains one of the poorest countries in the world. Informal and family employment is significant and more than a third of the population lives under the poverty threshold.

Main Indicators	2009	2010	2011	2012 (e)	2013 (e)
GDP (billions USD)	6.61	6.57	7.50e	8.02	8.56
GDP (Constant Prices, Annual % Change)	2.7	2.6	3.8e	4.3	4.8
GDP per Capita (USD)	704	682e	756	787	817
General Government Gross Debt (in % of GDP)	28.3	31.1e	30.8	30.5	30.1
Inflation Rate (%)	2.2	2.1	2.8	3.0	3.0
Current Account (billions USD)	-0.59	-0.46	-0.57	-0.57	-0.56
Current Account (in % of GDP)	-8.9	-6.9	-7.6e	-6.5	-

Source: IMF - World Economic Outlook Database - Last Available Data.

Note: (e) Estimated Data

Monetary Indicators	2008	2009	2010
Foreign Debt (million USD)	918	1,073	-
CFA Franc BCEAO (XOF) - Average Annual Exchange Rate For 1 USD	447.81	472.19	495.28

Source: World Bank - Last Available Data.

Find out all the exchange rates daily on our service Currency converter.

Main Sectors of Industry

Breakdown of Economic Activity By Sector	Agriculture	Industry	Services
Employment By Sector (in % of Total Employment)	42.7	9.5	46.2
Value Added (in % of GDP)	32.2	13.4	54.4
Value Added (Annual % Change)	4.4	4.6	0.9