Economy Overview
The economy of Benin remains underdeveloped and dependent on subsistence agriculture, cotton production, and regional trade. Growth in real output had averaged almost 4% before the global recession and it has exceeded that level in 2013-14. 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. An insufficient electrical supply continues to hamper Benin's economic growth though the government recently has taken steps to increase domestic power production. Private foreign direct investment is small, and foreign aid accounts for the majority of investment in infrastructure projects. Cotton, a key export, suffered from flooding in 2010-11, but high prices supported export earnings. Benin has appealed for international assistance to mitigate piracy against commercial shipping in its territory. In 2012, Benin became eligible for a second Compact under the Millennium Challenge Corporation, which is expected to be signed in 2015.
Agriculture Products
cotton, corn, cassava (manioc, tapioca), yams, beans, palm oil, peanuts, cashews; livestock
Industries
textiles, food processing, construction materials, cement
Industrial Production Growth Rate
3.2% (2014 est.)
Labor Force
3.662 million (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)
Distribution of Family Income Gini Index
36.5 (2003)
Budget
Revenues: $1.885 billion
Expenditures: $2.074 billion (2014 est.)
Public Debt
29.8% of GDP (2013 est.)
Central Bank Discount Rate
4.25% (31 December 2009)
Commercial Bank Prime Lending Rate
Stock of Narrow Money
$2.268 billion (31 December 2013 est.)
Stock of Broad Money
$3.61 billion (31 December 2013 est.)
Stock of Domestic Credit
$1.851 billion (31 December 2013 est.)
Market Value of Publicly Traded Shares
$NA
Reserves of Foreign Exchange and Gold
$694.9 million (31 December 2013 est.)
Debt External
$2.224 billion (31 December 2013 est.)
Stock of Direct Foreign Investment at Home
Stock of Direct Foreign Investment Abroad
Exchange Rates
495.28 (2010 est.)
