Economy Overview
The economy of Benin remains underdeveloped and dependent on subsistence agriculture, cotton production, and regional trade. Growth in real output had averaged about 4% before the global recession, but fell to 2.7% in 2009 and 3% in 2010. Inflation has subsided over the past several years. In order to raise growth, 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. As result of these reforms, Benin has become the most competitive country in the West African Economic and Monetary Union, according to the World Economic Forum. The Paris Club and bilateral creditors have eased the external debt situation, with Benin benefiting from a G-8 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
3% (2010 est.)country comparison to the world: 119
Labor Force
3.662 million (2007 est.)country comparison to the world: 94
Electricity production
128 million kWh (2008 est.)country comparison to the world: 190
Electricity Consumption
653 million kWh (2008 est.)country comparison to the world: 156
Electricity Exports
0 kWh (2009 est.)
Electricity Imports
651 million kWh (2008 est.)
Population Below Poverty Line
37.4% (2007 est.)
Household Income or Consumption by Percentage Share
Lowest 10%: 3.1%
Highest 10%: 29% (2003)
Distribution of Family Income Gini Index
36.5 (2003)country comparison to the world: 86
Budget
Revenues: $1.218 billion
Expenditures: $1.418 billion (2010 est.)
Central Bank Discount Rate
4.25% (31 December 2010 est.)country comparison to the world: 85 4.25% (31 December 2009 est.)
Commercial Bank Prime Lending Rate
Stock of Narrow Money
$1.619 billion (31 December 2010 est.)country comparison to the world: 125 $1.679 billion (31 December 2009 est.)
Stock of Broad Money
$2.389 billion (31 December 2010 est.)country comparison to the world: 142 $2.61 billion (31 December 2009 est.)
Stock of Domestic Credit
$1.204 billion (31 December 2010 est.)country comparison to the world: 148 $1.316 billion (31 December 2009 est.)
Market Value of Publicly Traded Shares
$NA
Reserves of Foreign Exchange and Gold
$953 million (31 December 2010 est.)country comparison to the world: 136 $1.23 billion (31 December 2009 est.)
Debt External
$2.894 billion (31 December 2009 est.)country comparison to the world: 132
Stock of Direct Foreign Investment at Home
Stock of Direct Foreign Investment Abroad
Exchange Rates
Communaute Financiere Africaine francs (XOF) per US dollar -495.28 (2010)472.19 (2009)447.81 (2008)493.51 (2007)522.59 (2006)
