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Benin: Benin Economy Profile

2015/10/07


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Benin, is a country located at Western Africa, it has an area of 114,760 Km2,

Benin, with a population of 10,599,510 people, it is ranked at 83º position by population of 196 countries ant it has a moderate population density, 92 people per km2. The capital is Porto-Novo and its currency is West African CFA franc

Benin is holding the 142 position by nominal GDP.Its national debt in 2013 was 2,478 millions of dollars, ( 29.82% debt-to-GDP ratio) and its public debt per capita is 240$ dollars per inhabitant. In terms of the human development index (HDI) of Benin, which is the index used by the United Nations to measure the progress of a country, was 0.476 points in 2013, leaving it in 165th place in the table of 186 countries published.

If the reason to visit Benin are business, you must know it's in the 151th of the Doing Business ranking , which provides objective measures of business regulations for local firms.

Economic growth in 2014 was an estimated 5.5%, versus 5.6% in 2013. It was driven by agriculture and services, which together accounted for more than 85% of GDP. Construction was stimulated by investment in transport and tourism. Inflation was negative, owing in particular to greater food crops in the 2013/14 season and to the decline in the price of oil since June 2014. In a context of high population growth, economic growth has not been sufficient to reduce poverty and inequalities.

The economic outlook for 2015 and 2016 will be shaped by the government’s determination to achieve the Millennium Development Goals and its implementation of a structural-investments programme (Programme d’investissements structurants – PIS). Growth, projected at 5.6% in 2015 and 6.0% in 2016, will require stepping up the reforms designed to improve the business climate and public-expenditure channels, public procurement in particular.

The reforms aim to mobilise the resources announced when the PIS was presented at the round table held in Paris in June 2014, then to execute the investment plans. Political and social developments will also be key factors, as elections will be held in 2015 and 2016. It will therefore be important to strengthen dialogue amongst the country’s political figures to reach a consensus and to hold elections in compliance with the country’s constitutional provisions.

Reducing regional disparities is a challenge for Benin. Balanced and sustainable development of the national space is one of the five priority areas of the ongoing strategy for growth and poverty reduction (Stratégie de croissance pour la réduction de la pauvreté – SCRP). A key PIS objective is to reduce the isolation of production areas, agricultural ones in particular. To achieve their spatial-inclusion policy, the authorities must do more to promote regional business clusters in the rural areas, improve how the pace of urbanisation is managed and curb population growth.

Growth in 2014, estimated at 5.5%, was driven by the agricultural and services sectors and by the country’s dynamic construction industry.
Based on the implementation of the structural-investments programme, growth is projected at 5.6% in 2015 and 6.0% in 2016, but will depend on how the political and social environment evolves.
Reducing regional disparities remains a challenge in Benin and will require implementing a spatial-inclusion policy and promoting regional business clusters.

 

Economy Overview

Economy Overview benin-globserver

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