In this page: Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline | COVID-19 Country Response
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 | 2020 | 2021 | 2022 (e) | 2023 (e) | 2024 (e) |
---|---|---|---|---|---|
GDP (billions USD) | 15.67 | 17.70e | 17.55 | 18.25 | 19.64 |
GDP (Constant Prices, Annual % Change) | 3.8 | 7.2e | 5.7 | 6.2 | 6.0 |
GDP per Capita (USD) | 1e | 1e | 1 | 1 | 1 |
General Government Gross Debt (in % of GDP) | 46.1 | 49.9 | 54.8 | 55.6 | 54.3 |
Inflation Rate (%) | 3.0 | 1.7 | 5.0 | 1.8 | 2.0 |
Current Account (billions USD) | -0.27 | -0.78 | -1.05 | -1.02 | -0.91 |
Current Account (in % of GDP) | -1.7 | -4.4 | -6.0 | -5.6 | -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 27.1% of Benin’s GDP and employs an estimated 38% of the workforce (World Bank, latest data available). The country has a fertile land, and a third of Benin’s territory is suitable for agriculture (World Bank). 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 40% of the GDP. Other cultivations include cashew nuts, corn, cassava, yams, beans, palm oil, and peanuts.
The industrial sector contributes 16.3% of GDP and gives employment to roughly 18% of the active population. Textiles, food processing, construction materials, and cement are the main sub-sectors.
Services (dominated by trade and transport) account for nearly 48% of Benin’s GDP and almost 43% of total employment.
Breakdown of Economic Activity By Sector | Agriculture | Industry | Services |
---|---|---|---|
Employment By Sector (in % of Total Employment) | 38.3 | 18.3 | 43.4 |
Value Added (in % of GDP) | 29.4 | 17.0 | 47.3 |
Value Added (Annual % Change) | 5.2 | 9.1 | 6.6 |
Source: World Bank - Latest available data.
Find more information about your business sector on our service Market Reports.
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.
Find out all the exchange rates daily on our service Currency Converter.
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
See the country risk analysis provided by Coface.
Benin is open to foreign trade which represents 45% of its GDP (World Bank). The country is a member of various trade organizations including the World Trade Organisation 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 (53.4% of total exports), cashew nut, coconut, Brazilian nuts, shea nuts, petroleum products, cement, gold, textile products, and seafood to Bangladesh, India, China, Malaysia, Ukraine, Denmark, the United Arab Emirates and Vietnam. Its main imports are food products (rice, meat, frozen fish), oil products, energy, drugs, vehicles and capital goods from India, China, France, Togo, Belgium, Russia and Turkey. It is also quite active in re-exportation, from Nigeria mainly.
For years now, Benin has had a structural trade deficit. In 2020, the trade deficit in goods amounted to USD 947 million (WTO). 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 2020, Benin exported goods with a total value of USD 2.3 billion while it imported goods worth USD 3.3 billion. Concerning services, Benin exported USD 410 million worth of services in 2020 and imported USD 578 million worth of services.
Foreign Trade Indicators | 2017 | 2018 | 2019 | 2020 | 2021 |
---|---|---|---|---|---|
Imports of Goods (million USD) | 3,494 | 4,375 | 3,932 | 3,263 | 4,333 |
Exports of Goods (million USD) | 2,216 | 3,344 | 3,052 | 2,316 | 3,445 |
Imports of Services (million USD) | 577 | 762 | 803 | 578 | 984 |
Exports of Services (million USD) | 323 | 485 | 510 | 410 | 555 |
Imports of Goods and Services (Annual % Change) | 14.3 | 4.8 | 3.4 | -19.8 | 44.4 |
Exports of Goods and Services (Annual % Change) | 7.0 | 5.0 | 8.6 | -25.0 | 53.5 |
Imports of Goods and Services (in % of GDP) | 34.3 | 34.5 | 34.1 | 25.0 | 34.3 |
Exports of Goods and Services (in % of GDP) | 27.2 | 27.3 | 29.6 | 19.9 | 28.5 |
Trade Balance (million USD) | -344 | -556 | -444 | -156 | n/a |
Trade Balance (Including Service) (million USD) | -704 | -821 | -722 | -436 | n/a |
Foreign Trade (in % of GDP) | 61.5 | 61.8 | 63.7 | 44.8 | 62.7 |
Source: WTO – World Trade Organisation ; World Bank , Latest Available Data
Main Customers (% of Exports) |
2021 |
---|---|
Bangladesh | 41.7% |
India | 10.0% |
China | 9.8% |
Vietnam | 5.0% |
Chad | 3.6% |
See More Countries | 29.9% |
Main Suppliers (% of Imports) |
2021 |
---|---|
India | 17.2% |
China | 11.7% |
France | 11.0% |
Belgium | 5.6% |
Togo | 4.2% |
See More Countries | 50.4% |
Source: Comtrade, Latest Available Data
Source: Comtrade, Latest Available Data
To go further, check out our service Import Export Flows.
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
Any Comment About This Content? Report It to Us.
© Export Entreprises SA, All Rights Reserved.
Latest Update: January 2023