Benin Economy - 2005

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 six 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. The 2001 privatization policy should continue in telecommunications, water, electricity, and agriculture in spite of initial government reluctance. The Paris Club and bilateral creditors have eased the external debt situation, while pressing for more rapid structural reforms. Benin continues to be hurt by Nigerian trade protection that bans imports of a growing list of products from Benin and elsewhere. As a result, smuggling and criminality along the Benin-Nigeria border has been on the rise.

GDP:
purchasing power parity - $8.338 billion (2004 est.)

GDP - real growth rate:
5% (2004 est.)

GDP - per capita:
purchasing power parity - $1,200 (2004 est.)

GDP - composition by sector:
agriculture: 36.3%
industry: 14.3%
services: 49.4% (2004 est.)

Labor force:
NA (1996)

Unemployment rate:
NA

Population below poverty line:
33% (2001 est.)

Household income or consumption by percentage share:
lowest 10%: NA
highest 10%: NA

Inflation rate (consumer prices):
2.8% (2004 est.)

Investment (gross fixed):
19.3% of GDP (2004 est.)

Budget:
revenues: $869.4 million
expenditures: $720.4 million, including capital expenditures of NA (2004 est.)

Agriculture - products:
cotton, corn, cassava (tapioca), yams, beans, palm oil, peanuts, livestock (2001)

Industries:
textiles, food processing, construction materials, cement (2001)

Industrial production growth rate:
8.3% (2001 est.)

Electricity - production:
285.2 million kWh (2002)

Electricity - consumption:
565.2 million kWh (2002)

Electricity - exports:
0 kWh (2002)

Electricity - imports:
300 million kWh (2002)

Oil - production:
700 bbl/day (2001 est.)

Oil - consumption:
11,500 bbl/day (2001 est.)

Oil - exports:
NA

Oil - imports:
NA

Oil - proved reserves:
4.105 million bbl (1 January 2002)

Natural gas - proved reserves:
608.8 million cu m (1 January 2002)

Current account balance:
$-159.9 million (2004 est.)

Exports:
$720.9 million f.o.b. (2004 est.)

Exports - commodities:
cotton, crude oil, palm products, cocoa

Exports - partners:
China 30.2%, India 15.6%, Thailand 6%, Ghana 5.9%, Niger 4.5% (2004)

Imports:
$934.5 million f.o.b. (2004 est.)

Imports - commodities:
foodstuffs, capital goods, petroleum products

Imports - partners:
China 29.7%, France 13.8%, Thailand 7.2%, Cote d'Ivoire 4.6% (2004)

Reserves of foreign exchange and gold:
$839.3 million (2004 est.)

Debt - external:
$1.6 billion (2000)

Economic aid - recipient:
$342.6 million (2000)

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 - 528.29 (2004), 581.2 (2003), 696.99 (2002), 733.04 (2001), 711.98 (2000)