In this page: Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline
Benin’s strong macroeconomic fundamentals have helped the country achieve robust economic growth despite recent external shocks such as the Covid-19 pandemic and the war in Ukraine. After reaching 6.3% in 2022, GDP growth remained resilient in 2023, slowing down to 5.5% (IMF), fueled by robust agricultural production, an expanding agroindustry sector invigorated by new operations at the Glo Djigbe Industrial Zone (GDIZ), and lively construction endeavors. Economic growth is expected to pick up to an annual average of 6.3% in 2024 and 6% next year, reflecting higher infrastructure spending, increased agricultural output, and a wider regional recovery.
Benin is dedicated to a consolidation strategy, centered around the IMF program, with the goal of decreasing the budget deficit to 3% of GDP by 2025 from 5.5% in 2022. Fitch predicts the budget deficit will decrease to 4.7% of GDP in 2023, 4.1% in 2024, and 3.3% in 2025. The program prioritizes revenue mobilization, aiming to increase tax/GDP by 0.5 percentage points each year. In recent years, the general government debt/GDP ratio has risen, reaching an estimated 53% in 2023 according to the IMF. Projections suggest that debt is expected to decrease to 52.4% in 2024 and further to 51.4% in 2025, bolstered by budget consolidation efforts and GDP growth. Public debt is divided equally between multilateral loans, external obligations, and domestic obligations, and it should stabilize thanks to continued fiscal consolidation and growth (Coface). In 2023, the current account deficit stood at 6.1% of GDP, showing only a slight improvement from 6.2% in 2022. This occurred despite declines in international fuel and food prices and a weakened dollar. Factors contributing to this trend include reduced cotton production and prices, decreased trade volumes with Nigeria and Niger, and increased official imports of fuel, as reported by Fitch Ratings. As per inflation, it was estimated at 5% in 2023, with an expected reduction to 2.5% this year and 2% in 2025 (IMF).
Despite many efforts to reduce it, the poverty rate remains as high as 38.5% according to World Bank data. In 2022, the unemployment rate in the country was estimated at 1.5%. However, the underemployment rate stood at more than 70%, and the informal employment rate at more than 90% (World Bank).
Main Indicators | 2023 (E) | 2024 (E) | 2025 (E) | 2026 (E) | 2027 (E) |
---|---|---|---|---|---|
GDP (billions USD) | 19.68 | 21.32 | 23.07 | 24.96 | 27.00 |
GDP (Constant Prices, Annual % Change) | 6.4 | 6.5 | 6.5 | 6.2 | 6.2 |
GDP per Capita (USD) | 1,433 | 1,510 | 1,587 | 1,668 | 1,752 |
General Government Gross Debt (in % of GDP) | 54.5 | 54.0 | 52.6 | 51.4 | 50.3 |
Inflation Rate (%) | 2.8 | 2.0 | 2.0 | 2.0 | 2.0 |
Current Account (billions USD) | -1.16 | -1.29 | -1.39 | -1.17 | -1.24 |
Current Account (in % of GDP) | -5.9 | -6.0 | -6.0 | -4.7 | -4.6 |
Source: IMF – World Economic Outlook Database , Latest available data
Note: (e) Estimated Data
Benin’s economy is heavily reliant on agriculture. This sector accounts for 26.9% of Benin’s GDP and employs an estimated 28% of the workforce (World Bank, latest data available). The country has fertile land, and a third of Benin’s territory is suitable for agriculture. Around half of the population rely on subsistence farming for their livelihood, whereas cotton is the main crop and the key export commodity. The cotton sector contributes to around 40% of the GDP. Other cultivations include cashew nuts, corn, cassava, yams, beans, palm oil, and peanuts. The 2023 "Aman" paddy crop, constituting 35% of the yearly yield, was harvested and continued until January 2024, as reported by FAO. Production levels were predicted to be above average, largely owing to anticipated high yields. The 2023 maize season concluded last July, with record production reaching 4.7 million tonnes, driven by substantial sowings prompted by strong demand and high prices during planting. The 2023 wheat crop, harvested in April, officially yielded approximately 1.1 million tonnes, close to the average production level.
The industrial sector in Benin is characterized by a range of activities, with key sectors including agro-processing, textile manufacturing, and construction. Agro-processing represents a significant portion of the industrial landscape, with Benin's agricultural resources supporting industries such as palm oil refining, cotton ginning, and food processing. Textile manufacturing, although relatively small-scale, plays a vital role in the economy, leveraging the country's cotton production for fabric and garment production. Construction is another prominent sector, driven by infrastructure development projects and urbanization trends. Emerging sectors include renewable energy and light manufacturing, as the government seeks to diversify the industrial base and attract foreign investment. Overall, the industrial sector is estimated to account for 17% of GDP and 22% of employment (World Bank).
Services (dominated by trade and transport) account for 46.9% of Benin’s GDP and almost 49% of total employment. Benin's services sector encompasses various industries that contribute to the country's economic development. Key sectors include telecommunications, banking and finance, transportation, and tourism. Tourism, though still emerging, holds promise due to Benin's cultural heritage, historical sites, and natural attractions. As the government invests in infrastructure and promotes private sector participation, the services sector is poised for further expansion.
Breakdown of Economic Activity By Sector | Agriculture | Industry | Services |
---|---|---|---|
Employment By Sector (in % of Total Employment) | 28.0 | 22.0 | 50.0 |
Value Added (in % of GDP) | 25.4 | 17.3 | 47.7 |
Value Added (Annual % Change) | 5.1 | 7.3 | 6.6 |
Source: World Bank - Latest available data.
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Monetary Indicators | 2016 | 2017 | 2018 | 2019 | 2020 |
---|---|---|---|---|---|
CFA Franc BCEAO (XOF) - Average Annual Exchange Rate For 1 MUR | 16.68 | 16.88 | 16.37 | 16.51 | 14.63 |
Source: World Bank - Latest available data.
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The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labour freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms.
Economic freedom in the world (interactive map)
Source: Index of Economic Freedom, Heritage Foundation
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Benin is open to foreign trade, which represents 51% of its GDP (World Bank). The country is a member of various trade organizations, including the World Trade Organization and the West African Economic and Monetary Union (WAEMU). The vast majority of its trade passes through the port of Cotonou, the capacity of which the government wants to develop. Benin mainly exports cotton (64.8% of total exports in 2022), oil seeds, petroleum oils, and coconuts, whereas imports are led by rice (18.2%), petroleum oils (15%), medicaments, and fertilizers (data Comtrade).
The country’s main export partners are Bangladesh (45.3%), India (11.9%), China (6.1%), Egypt (4.5%), and Pakistan (4.2%), while imports come chiefly from India (15.7%), China (13.1%), France (8.1%), the United Arab Emirates (6.7%), and Nigeria (5.1% - data Comtrade 2022).
For years now, Benin has had a structural trade deficit. In 2022, the trade deficit stood at 7.6% of GDP (World Bank). This is mainly due to low exports, which are largely made up of low-cost agricultural products, and the country’s heavy reliance on foreign countries for its oil and energy supply. According to WTO data, in 2022, Benin exported goods with a total value of USD 3.54 billion while it imported goods worth USD 4.78 billion. Concerning services, Benin exported USD 540 million and imported USD 982 million (WTO). According to the national statistics bureau, during the third quarter of 2023, Benin's goods exports decreased by 9.6% compared to the previous quarter, while goods imports dropped by 20.8% during the same period.
Foreign Trade Indicators | 2019 | 2020 | 2021 | 2022 | 2023 |
---|---|---|---|---|---|
Imports of Goods (million USD) | 3,932 | 3,555 | 4,370 | 4,784 | 4,234 |
Exports of Goods (million USD) | 3,052 | 2,996 | 3,642 | 3,568 | 4,071 |
Imports of Services (million USD) | 806 | 790 | 931 | 982 | n/a |
Exports of Services (million USD) | 528 | 510 | 512 | 540 | n/a |
Imports of Goods and Services (Annual % Change) | 3.4 | -19.8 | 16.8 | 18.5 | 8.7 |
Exports of Goods and Services (Annual % Change) | 8.6 | -25.0 | 12.6 | 19.1 | 6.2 |
Imports of Goods and Services (in % of GDP) | 34.1 | 25.0 | 27.1 | 29.3 | 30.2 |
Exports of Goods and Services (in % of GDP) | 29.6 | 19.9 | 20.9 | 21.7 | 21.2 |
Trade Balance (million USD) | -444 | -156 | -352 | -637 | n/a |
Trade Balance (Including Service) (million USD) | -722 | -436 | -772 | -1,024 | n/a |
Foreign Trade (in % of GDP) | 63.7 | 44.8 | 48.1 | 50.9 | 51.4 |
Source: WTO – World Trade Organisation ; World Bank , Latest Available Data
Main Customers (% of Exports) |
2023 |
---|---|
Bangladesh | 37.2% |
India | 15.4% |
Pakistan | 7.2% |
Togo | 5.4% |
China | 5.3% |
See More Countries | 29.5% |
Main Suppliers (% of Imports) |
2023 |
---|---|
India | 17.1% |
China | 12.8% |
France | 8.6% |
United States | 5.2% |
Nigeria | 5.2% |
See More Countries | 51.1% |
Source: Comtrade, Latest Available Data
Source: Comtrade, Latest Available Data
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0.5 bn USD of services exported in 2021 | |
---|---|
47.78% | |
Business travelBusiness travel | 26.49% |
Personal travelPersonal travel | 21.29% |
OtherOther | 16.04% |
36.19% | |
7.53% | |
3.84% | |
1.91% | |
1.78% | |
0.76% | |
0.21% | |
n/a% |
0.9 bn USD of services imported in 2021 | |
---|---|
63.35% | |
14.05% | |
8.34% | |
Personal travelPersonal travel | 7.79% |
OtherOther | 28.30% |
Business travelBusiness travel | 0.55% |
6.27% | |
5.60% | |
1.19% | |
0.93% | |
0.26% | |
n/a% |
Source: United Nations Statistics Division, Latest Available Data
The world rankings, published annually, measures violations of press freedom worldwide. It reflects the degree of freedom enjoyed by journalists, the media and digital citizens of each country and the means used by states to respect and uphold this freedom. Finally, a note and a position are assigned to each country. To compile this index, Reporters Without Borders (RWB) prepared a questionnaire incorporating the main criteria (44 in total) to assess the situation of press freedom in a given country. This questionnaire was sent to partner organisations,150 RWB correspondents, journalists, researchers, jurists and human rights activists. It includes every kind of direct attacks against journalists and digital citizens (murders, imprisonment, assault, threats, etc.) or against the media (censorship, confiscation, searches and harassment etc.).
The Indicator of Political Freedom provides an annual evaluation of the state of freedom in a country as experienced by individuals. The survey measures freedom according to two broad categories: political rights and civil liberties. The ratings process is based on a checklist of 10 political rights questions (on Electoral Process, Political Pluralism and Participation, Functioning of Government) and 15 civil liberties questions (on Freedom of Expression, Belief, Associational and Organizational Rights, Rule of Law, Personal Autonomy and Individual Rights). Scores are awarded to each of these questions on a scale of 0 to 4, where a score of 0 represents the smallest degree and 4 the greatest degree of rights or liberties present. The total score awarded to the political rights and civil liberties checklist determines the political rights and civil liberties rating. Each rating of 1 through 7, with 1 representing the highest and 7 the lowest level of freedom, corresponds to a range of total scores.
Political freedom in the world (interactive map)
Source: Freedom in the World Report, Freedom House
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Latest Update: March 2025