Benin Economy 2008

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 in spite of government reluctance. 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. Benin continues to be hurt by Nigerian trade protection that bans imports of a growing list of products from Benin and elsewhere, which has resulted in increased smuggling and criminality in the border region.

GDP (purchasing power parity):
$12.18 billion (2007 est.)

GDP (official exchange rate):
$4.946 billion (2007 est.)

GDP - real growth rate:
4.5% (2007 est.)

GDP - per capita (PPP):
$1,500 (2007 est.)

GDP - composition by sector:
agriculture: 33.2%
industry: 14.5%
services: 52.3% (2007 est.)

Labor force:
3.211 million (1996)

Unemployment rate:
NA%

Population below poverty line:
33% (2001 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)

Inflation rate (consumer prices):
2.5% (2007 est.)

Investment (gross fixed):
19.8% of GDP (2007 est.)

Budget:
revenues: $936.9 million
expenditures: $1.226 billion (2007 est.)

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.)

Electricity - production:
105 million kWh (2005)

Electricity - consumption:
587 million kWh (2005)

Electricity - exports:
0 kWh (2005)

Electricity - imports:
595 million kWh (2005)

Oil - production:
0 bbl/day (2005)

Oil - consumption:
16,000 bbl/day (2005 est.)

Oil - exports:
8,981 bbl/day (2004)

Oil - imports:
26,180 bbl/day (2004)

Oil - proved reserves:
8.21 million bbl (1 January 2006 est.)

natural gas - production:
0 cu m (2005 est.)

natural gas - consumption:
0 cu m (2005 est.)

natural gas - exports:
0 cu m (2005 est.)

natural gas - imports:
0 cu m (2005)

natural gas - proved reserves:
1.086 billion cu m (1 January 2006 est.)

Current account balance:
-$278.8 million (2007 est.)

Exports:
$708.7 million f.o.b. (2007 est.)

Exports - commodities:
cotton, cashews, shea butter, textiles, palm products, seafood

Exports - partners:
China 20.9%, Indonesia 7.7%, India 7%, Netherlands 6.2%, Niger 5.7%, Togo 4.6%, Nigeria 4.3% (2006)

Imports:
$976.3 million f.o.b. (2007 est.)

Imports - partners:
China 46.6%, France 7.5%, Thailand 6% (2006)

Economic aid - recipient:
$349.1 million (2005)

Reserves of foreign exchange and gold:
$825 million (31 December 2007 est.)

Debt - external:
$1.6 billion (2000)

Market value of publicly traded shares:
$NA

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 - 493.51 (2007), 522.59 (2006), 527.47 (2005), 528.29 (2004), 581.2 (2003)