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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.

Agriculture Products

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

Industries

textiles, food processing, construction materials, cement

Industrial Production Growth Rate

4.5% (2007 est.)

Labor Force

5.38 million (2007 est.)

Electricity production

120 million kWh (2006 est.)

Electricity Consumption

595 million kWh (2006 est.)

Electricity Exports

0 kWh (2007 est.)

Electricity Imports

590 million kWh (2006 est.)

Unemployment Rate

NA%

Population Below Poverty Line

Household Income or Consumption by Percentage Share

Lowest 10%: 3.1%

Highest 10%: 29% (2003)

Distribution of Family Income Gini Index

36.5 (2003)

Budget

Revenues: $959.2 million

Expenditures: $1.211 billion (2007 est.)

Central Bank Discount Rate

4.25% (31 December 2007)

Commercial Bank Prime Lending Rate

Stock of Narrow Money

Stock of Broad Money

Stock of Domestic Credit

$520.6 million (31 December 2007)

Market Value of Publicly Traded Shares

$NA

Reserves of Foreign Exchange and Gold

$1.209 billion (31 December 2007 est.)

Debt External

$1.2 billion (2007)

Stock of Direct Foreign Investment at Home

Stock of Direct Foreign Investment Abroad

Exchange Rates

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

Year	2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000

GDP Official Exchange Rate

$5.433 billion 2007 est.

GDP Purchasing Power Parity

$12 billion (2007 est.)

GDP Real Growth Rate

4.5% (2007 est.)

GDP Per Capital

$1,400 (2007 est.)

Gross National Saving

GDP Composition by end Use

GDP Composition by Sector of Origin

Agriculture
33.2%
Industry
14.5%
Services
52.3% (2007 est.)

Inflation Rate Consumer Prices

1.3% (2007 est.)

Current Account Balance

-$441 million (2007 est.)

Exports

$586 million f.o.b. (2007 est.)

Exports Partners

China
24.7%
India
8.2%
Niger
6.6%
Togo
5.4%
Nigeria
5.3%
Belgium
4.6%

Exports Commodities

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

Imports

$1.085 billion f.o.b. (2007 est.)

Imports Partners

China
44.5%
France
8.2%
US
6.5%
Thailand
6.3%
Malaysia
4.8%

Imports Commodities

Foodstuffs, capital goods, petroleum products

Benin