Benin Economy Profile 2008

Economy - overview

The economy of Benin remains underdeveloped and dependent on subsistence agriculture, cotton production, and regional trade. Growth in real output has averaged around 5% in the past seven years, but rapid population growth has offset much of this increase. Inflation has subsided over the past several years. In order to raise growth still further, Benin plans to attract more foreign investment, place more emphasis on tourism, facilitate the development of new food processing systems and agricultural products, and encourage new information and communication technology. Specific projects to improve the business climate by reforms to the land tenure system, the commercial justice system, and the financial sector were included in Benin's $307 million Millennium Challenge Account grant signed in February 2006. The 2001 privatization policy continues in telecommunications, water, electricity, and agriculture though the government annulled the privatization of Benin's state cotton company in November 2007 after the discovery of irregularities in the bidding process. The Paris Club and bilateral creditors have eased the external debt situation, with Benin benefiting from a G8 debt reduction announced in July 2005, while pressing for more rapid structural reforms. An insufficient electrical supply continues to adversely affect Benin's economic growth though the government recently has taken steps to increase domestic power production.

GDP (purchasing power parity)

$12.18 billion (2007 est.)

GDP (official exchange rate)

$5.425 billion (2007 est.)

GDP - real growth rate

4.5% (2007 est.)

GDP - per capita (PPP)

$1,500 (2007 est.)

GDP - composition by sector

agriculture: 33.2%
industry: 14.5%
services: 52.3% (2007 est.)

Population below poverty line

37.4% (2007 est.)

Household income or consumption by percentage share

lowest 10%: 3.1%
highest 10%: 29% (2003)

Inflation rate (consumer prices)

2.5% (2007 est.)

Investment (gross fixed)

19.8% of GDP (2007 est.)

Labor force

5.38 million (2007 est.)

Unemployment rate

NA%

Distribution of family income - Gini index

36.5 (2003)

Budget

revenues: $936.9 million
expenditures: $1.226 billion (2007 est.)

Industries

textiles, food processing, construction materials, cement

Industrial production growth rate

4.5% (2007 est.)

Electricity - production

105 million kWh (2005)

Electricity - consumption

587 million kWh (2005)

Electricity - exports

0 kWh (2005)

Electricity - imports

595 million kWh (2005)

Oil - production

0 bbl/day (2007)

Oil - consumption

9,232 bbl/day (2007 est.)

Oil - imports

16,830 bbl/day (2007 est.)

Oil - exports

0 bbl/day (2007)

Oil - proved reserves

8.21 million bbl (1 January 2006 est.)

Natural gas - production

0 cu m (2005 est.)

Natural gas - consumption

0 cu m (2005 est.)

Natural gas - exports

0 cu m (2005 est.)

Natural gas - imports

0 cu m (2005)

Natural gas - proved reserves

1.086 billion cu m (1 January 2006 est.)

Current Account Balance

-$278.8 million (2007 est.)

Agriculture - products

cotton, corn, cassava (tapioca), yams, beans, palm oil, peanuts, cashews; livestock

Exports

$708.7 million f.o.b. (2007 est.)

Exports - commodities

cotton, cashews, shea butter, textiles, palm products, seafood

Exports - partners

China 20.9%, Indonesia 7.7%, India 7%, Netherlands 6.2%, Niger 5.7%, Togo 4.6%, Nigeria 4.3% (2006)

Imports

$976.3 million f.o.b. (2007 est.)

Imports - commodities

foodstuffs, capital goods, petroleum products

Imports - partners

China 46.6%, France 7.5%, Thailand 6% (2006)

Reserves of foreign exchange and gold

$825 million (31 December 2007 est.)

Debt - external

$1.2 billion (2007)

Market value of publicly traded shares

$NA

Economic aid - recipient

$374.7 million (2006)

Currency (code)

Communaute Financiere Africaine franc (XOF); note - responsible authority is the Central Bank of the West African States

Exchange rates

Communaute Financiere Africaine francs (XOF) per US dollar - 493.51 (2007), 522.59 (2006), 527.47 (2005), 528.29 (2004), 581.2 (2003)
note: since 1 January 1999, the XOF franc has been pegged to the euro at a rate of 655.957 XOF francs per euro

Fiscal year

calendar year