Benin Economy Profile 2009

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)

$12.83 billion (2008 est.)
$12.25 billion (2007 est.)
$11.72 billion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$6.94 billion (2008 est.)

GDP - real growth rate

4.8% (2008 est.)
4.5% (2007 est.)
3.8% (2006 est.)

GDP - per capita (PPP)

$1,500 (2008 est.)
$1,500 (2007 est.)
$1,500 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

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

Population below poverty line

37.4% (2007 est.)

Labor force

3.662 million (2007 est.)

Unemployment rate

NA%

Household income or consumption by percentage share

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

Distribution of family income - Gini index

36.5 (2003)

Investment (gross fixed)

19.2% of GDP (2008 est.)

Budget

revenues: $1.407 billion
expenditures: $1.291 billion (2008 est.)

Inflation rate (consumer prices)

7.9% (2008 est.)
1.3% (2007 est.)

Central bank discount rate

4.75% (31 December 2008)
4.25% (31 December 2007)

Commercial bank prime lending rate

NA

Stock of money

$NA (31 December 2008)
$1.324 billion (31 December 2007)

Stock of quasi money

$NA (31 December 2008)
$627.2 million (31 December 2007)

Stock of domestic credit

$NA (31 December 2008)
$520.6 million (31 December 2007)

Industries

textiles, food processing, construction materials, cement

Industrial production growth rate

3.5% (2008 est.)

Electricity - production

120 million kWh (2006 est.)

Electricity - production by source

fossil fuel: 14.2%
hydro: 85.8%
nuclear: 0%
other: 0% (2001)

Electricity - consumption

595 million kWh (2006 est.)

Electricity - exports

0 kWh (2007 est.)

Electricity - imports

590 million kWh (2006 est.)

Oil - production

0 bbl/day (2007 est.)

Oil - consumption

9,232 bbl/day (2007 est.)

Oil - imports

16,830 bbl/day (2007 est.)

Oil - exports

6,484 bbl/day (2005)

Oil - proved reserves

8 million bbl (1 January 2008 est.)

Natural gas - production

0 cu m (2007 est.)

Natural gas - consumption

0 cu m (2007 est.)

Natural gas - exports

0 cu m (2007 est.)

Natural gas - imports

0 cu m (2007 est.)

Natural gas - proved reserves

1.133 billion cu m (1 January 2008 est.)

Current Account Balance

$-487 million (2008 est.)
$-407 million (2007 est.)

Agriculture - products

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

Exports

$894 million (2008 est.)
$819 million (2007 est.)

Exports - commodities

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

Exports - partners

China 19.7%, Japan 8.9%, India 6.3%, Niger 5.1%, US 4.9%, Nigeria 4.5%, Togo 4.2% (2008)

Imports

$1.399 billion (2008 est.)
$1.194 billion (2007 est.)

Imports - commodities

foodstuffs, capital goods, petroleum products

Imports - partners

China 39.8%, US 14%, Thailand 6.9%, France 6.9%, Malaysia 4.2% (2008)

Reserves of foreign exchange and gold

$1.236 billion (31 December 2008 est.)
$1.209 billion (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)

XOF

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 - 447.81 (2008 est.), 493.51 (2007), 522.59 (2006), 527.47 (2005), 528.29 (2004)
note: since 1 January 1999, the West African CFA franc (XOF) has been pegged to the euro at a rate of 655.957 CFA francs per euro; West African CFA franc (XOF) coins and banknotes are not accepted in countries using Central African CFA francs (XAF), and vice versa, even though the two currencies trade at par

Fiscal year

calendar year