View source for Economy of Benin

{{Short description|none}}
{{Use dmy dates|date=September 2021}}
{{more citations needed|date=June 2014}}
{{Infobox economy
|country         = Benin
|image           = Cotonouskyline.jpg
|image_size      = 310px
|caption         = [[Cotonou]] is the largest city and economic capital of [[Benin]]
|currency        = [[West African CFA franc]] (XOF, CFA)
|year            = Calendar year
|organs          = [[African Union|AU]], [[African Continental Free Trade Agreement|AfCFTA]] (signed), [[Economic Community of West African States|ECOWAS]], [[Community of Sahel–Saharan States|CEN-SAD]], [[World Trade Organization|WTO]]
|group           = {{plainlist|
*[[Least developed countries|Least Developed]]<ref>{{cite web |url=https://www.imf.org/external/pubs/ft/weo/2019/01/weodata/weoselco.aspx?g=2200&sg=All+countries+%2f+Emerging+market+and+developing+economies |title=World Economic Outlook Database, April 2019 |publisher=[[International Monetary Fund]] |website=IMF.org |access-date=29 September 2019}}</ref>
*[[Least Developed Countries|Lower-middle income economy]]<ref>{{cite web |url=https://datahelpdesk.worldbank.org/knowledgebase/articles/906519-world-bank-country-and-lending-groups |title=World Bank Country and Lending Groups |publisher=[[World Bank]] |website=datahelpdesk.worldbank.org |access-date=29 September 2019}}</ref>}}
|population      = {{increase}} 11,485,048 (2018)<ref>{{cite web |title=Population, total - Benin |url=https://data.worldbank.org/indicator/SP.POP.TOTL?locations=BJ&name_desc=false |website=data.worldbank.org |publisher=World Bank |access-date=26 January 2020}}</ref>
|gdp             = {{plainlist|
*{{increase}} $14.374 billion (nominal, 2019 est.)<ref name="IMFWEOBJ">{{cite web |url=https://www.imf.org/external/pubs/ft/weo/2019/02/weodata/weorept.aspx?pr.x=48&pr.y=10&sy=2017&ey=2021&scsm=1&ssd=1&sort=country&ds=.&br=1&c=638&s=NGDPD%2CPPPGDP%2CNGDPDPC%2CPPPPC%2CPCPIPCH&grp=0&a= |title=World Economic Outlook Database, October 2019 |publisher=[[International Monetary Fund]] |website=IMF.org |access-date=17 November 2019}}</ref>
*{{increase}} $40.717 billion ([[Purchasing power parity|PPP]], 2019 est.)<ref name="IMFWEOBJ"/>}}
|gdp rank        = {{plainlist|
*[[List of countries by GDP (nominal)|124th (nominal, 2019)]]
*[[List of countries by GDP (PPP)|115th (PPP, 2019)]]}}
|growth          = {{plainlist|
*5.8%&nbsp;(2017) 6.7%&nbsp;(2018)
*6.4%&nbsp;(2019e) 6.7%&nbsp;(2020f)<ref name=" World Bank">{{cite web |url=https://openknowledge.worldbank.org/bitstream/handle/10986/33044/9781464814693.pdf |title=Global Economic Prospects, January 2020 : Slow Growth, Policy Challenges |page=147 |publisher=[[World Bank]] |website=openknowledge.worldbank.org |access-date=12 January 2020}}</ref>}}
|per capita      = {{plainlist|
*{{decrease}} $1,217 (nominal, 2019 est.)<ref name="IMFWEOBJ"/>
*{{increase}} $3,446 (PPP, 2019 est.)<ref name="IMFWEOBJ"/>}}
|per capita rank = {{plainlist|
*[[List of countries by GDP (nominal) per capita|157th (nominal, 2019)]]
*[[List of countries by GDP (PPP) per capita|153rd (PPP, 2019)]]}}
|sectors         = {{plainlist|
*[[Primary sector of the economy|agriculture]]: 26.1%
*[[Secondary sector of the economy|industry]]: 22.8%
*[[Tertiary sector of the economy|services]]: 51.1%
*(2017 est.)<ref name="CIAWFBN">{{cite web |url=https://www.cia.gov/the-world-factbook/countries/benin/|title=The World Factbook |publisher=[[Central Intelligence Agency]] |website=CIA.gov |access-date=1 February 2019}}</ref>}}
|inflation       = 1.0% (2020 est.)<ref name="IMFWEOBJ"/>
|poverty         = {{plainlist|
*36.2% (2011 est.)<ref name="CIAWFBN"/>
*49.5% on less than $1.90/day (2015)<ref>{{cite web |title=Poverty headcount ratio at $1.90 a day (2011 PPP) (% of population) - Benin |url=https://data.worldbank.org/indicator/SI.POV.DDAY?locations=BJ&name_desc=false |website=data.worldbank.org |publisher=World Bank |access-date=25 January 2020}}</ref>}}
|gini            = 47.8 {{color|red|high}} (2015)<ref>{{cite web|url=https://data.worldbank.org/indicator/SI.POV.GINI?locations=BJ|title=GINI index (World Bank estimate)|publisher=[[World Bank]]|website=data.worldbank.org |access-date=28 May 2019}}</ref>
|hdi             = {{plainlist|
*{{increase}} 0.520 {{color|red|low}} (2018)<ref>{{cite web |url=http://hdr.undp.org/en/indicators/137506 |title=Human Development Index (HDI) |publisher=[[Human Development Report|HDRO (Human Development Report Office)]] [[United Nations Development Programme]] |website=hdr.undp.org |access-date=11 December 2019}}</ref> ([[List of countries by Human Development Index|163rd]])
*0.327 [[List of countries by inequality-adjusted HDI|IHDI]] (2018)<ref>{{cite web |url=http://hdr.undp.org/en/content/table-3-inequality-adjusted-human-development-index-ihdi |title=Inequality-adjusted Human Development Index (IHDI) |publisher=[[Human Development Report|HDRO (Human Development Report Office)]] [[United Nations Development Programme]] |website=hdr.undp.org |access-date=11 December 2019}}</ref>}}
|labor           = {{plainlist|
*{{increase}} 4,862,455 (2019)<ref>{{cite web |url=https://data.worldbank.org/indicator/SL.TLF.TOTL.IN?locations=BJ |title=Labor force, total - Benin |publisher=[[World Bank]] |website=data.worldbank.org |access-date=17 November 2019}}</ref>
*{{decrease}} 70.0% employment rate (2011)<ref>{{cite web |title=Employment to population ratio, 15+, total (%) (national estimate) - Benin |url=https://data.worldbank.org/indicator/SL.EMP.TOTL.SP.NE.ZS?locations=BJ&name_desc=false |website=data.worldbank.org |publisher=World Bank |access-date=26 January 2020}}</ref>}}
|occupations     =
|unemployment    = 1% (2014 est.)<ref name="CIAWFBN"/>
|edbr            = {{increase}} [[Ease of doing business index#Ranking|149th (below average, 2020)]]<ref name=" World Bank and International Financial Corporation ">{{cite web |url=http://www.doingbusiness.org/data/exploreeconomies/benin |title=Ease of Doing Business in Benin |publisher=Doingbusiness.org |access-date=2017-01-24 }}</ref>
|industries      = textiles, food processing, construction materials, cement
|exports         = $1.974 billion (2017 est.)<ref name="CIAWFBN"/>
|export-goods    = [[Cotton]], [[cashew]]s, [[shea butter]], [[textile]]s, [[palm tree|palm]] products, [[seafood]]
|export-partners = {{plainlist|
*{{flag|Bangladesh}} 26.9%
*{{flag|India}} 14.2%
*{{flag|Vietnam}} 10.4%
*{{flag|China}} 7.4%
*{{flag|Nigeria}} 5.7%
*{{flag|Denmark}} 3.6%
*{{flag|Egypt}} 3.4%
*{{flag|Niger}} 3.1%
*(2019)<ref name="CIAWFBN"/>}}
|imports         = $2.787 billion (2017 est.)<ref name="CIAWFBN"/>
|import-goods    = Foodstuffs, capital goods, petroleum products
|import-partners = {{plainlist|
*{{flag|India}} 13.7%
*{{flag|China}} 11.1%
*{{flag|Togo}} 10.9%
*{{flag|France}} 8.8%
*{{flag|Thailand}} 5.4%
*{{flag|Belgium}} 3.8%
*{{flag|UAE}} 3.4%
*{{flag|Morocco}} 2.9%
*(2019)<ref name="CIAWFBN"/>}}
|current account = {{decrease}} −$1.024 billion (2017 est.)<ref name="CIAWFBN"/>
|gross external debt = {{increaseNegative}} $2.804 billion (31 December 2017 est.)<ref name="CIAWFBN"/>
|debt            = {{increaseNegative}} 54.6% of GDP (2017 est.)<ref name="CIAWFBN"/>
|revenue         = 1.578 billion (2017 est.)<ref name="CIAWFBN"/>
|expenses        = 2.152 billion (2017 est.)<ref name="CIAWFBN"/>
|balance         = −6.2% (of GDP) (2017 est.)<ref name="CIAWFBN"/>
|reserves        = {{gain}} $698.9 million (31 December 2017 est.)<ref name="CIAWFBN"/>
|credit          = {{plainlist|
*[[Standard & Poor's]]:<ref>{{cite web |title= Sovereigns rating list |publisher=Standard & Poor's |url=http://www.standardandpoors.com/ratings/sovereigns/ratings-list/en/eu/?subSectorCode=39 |access-date=26 May 2011}}</ref>
*B (Domestic)
*B (Foreign)
*BBB- (T&C Assessment)}}
|aid             =
|cianame         = benin
|spelling        =
}}
The '''economy of Benin''' remains underdeveloped and dependent on [[subsistence agriculture]] and [[cotton]]. Cotton accounts for 40% of [[Benin]]'s GDP and roughly 80% of official export receipts. There is also production of [[textile]]s, palm products, and [[cocoa bean]]s. [[Maize]] (corn), [[bean]]s, [[rice]], [[peanut]]s, [[cashew]]s, [[pineapple]]s, [[cassava]], [[yam (vegetable)|yams]], and other various tubers are grown for local subsistence. Benin began producing a modest quantity of offshore oil in October 1982. Production ceased in recent years but exploration of new sites is ongoing.
A modest fishing fleet provides fish and shrimp for local subsistence and export to Europe. Formerly government-owned commercial activities are now privatized. A French [[brewing|brewer]] acquired the former state-run brewery. Smaller businesses are privately owned by Beninese citizens, but some firms are foreign owned, primarily French and [[Lebanon|Lebanese]]. The private commercial and agricultural sectors remain the principal contributors to growth.
==Economic development==
Since the transition to a [[Democracy|democratic]] government in 1990, Benin has undergone an economic recovery. A large injection of external investment from both private and public sources has alleviated the economic difficulties of the early 1990s caused by global recession and persistently low commodity prices (although the latter continues to affect the economy). The manufacturing sector is confined to some light industry, which is mainly involved in processing primary products and the cow production of consumer goods. A planned joint [[hydroelectric]] project with neighboring [[Togo]] is intended to reduce Benin's dependence on imported energy mostly from [[Ghana]], which currently accounts for a significant proportion of the country's imports.
The service sector has grown quickly, stimulated by economic liberalization and fiscal reform, and the use of modern technology such as automobiles and computers has grown considerably as a result. Membership of the [[CFA Franc Zone]] offers reasonable currency stability as well as access to French economic support. Benin sells its products mainly to France and, in smaller quantities, to the Netherlands, Korea, Japan, and India. France is Benin's leading source for imports. Benin is also a member of the [[Economic Community of West African States]] (ECOWAS).
Despite its rapid growth, the economy of Benin still remains underdeveloped and dependent on subsistence agriculture, cotton production, and regional trade. Growth in real output averaged a sound 5% since 1996, but a rapid population rise offset much of this growth on a per capita basis.  Inflation has subsided over the past several years. Commercial and transport activities, which make up a large part of GDP, are vulnerable to developments in [[Nigeria]], particularly fuel shortages.
Although [[trade unions in Benin]] represent up to 75% of the formal workforce, the large informal economy has been noted by the [[International Trade Union Confederation]] (ITCU) to contain ongoing problems, including a lack of women's wage equality, the use of [[child labor|child labour]], and the continuing issue of [[unfree labour|forced labour]].<ref>{{cite web
| title=Serious violations of core labour standards in Benin, Burkina Faso and Mali
| work=ICFTU Online
| url=http://www.icftu.org/displaydocument.asp?Index=991220267&Language=EN
| access-date=30 July 2007
}}</ref>
In December 2014, the [[Bureau of International Labor Affairs]] issued a ''[[List of Goods Produced by Child Labor or Forced Labor]]''<ref>{{cite web| url = http://www.dol.gov/ilab/reports/child-labor/list-of-goods/| title = List of Goods Produced by Child Labor or Forced Labor}}</ref> in which the Republic of Benin was mentioned among 74 other countries where significant instances of child labor were observed. Two major products involved such working conditions in Benin: cotton and crushed granite.
==Agriculture==
Benin produced in 2018:
* 3.8 million tons of [[cassava]] (17th largest producer in the world);
* 2.7 million tons of [[Yam (vegetable)|yam]] (4th largest producer in the world, losing only to Nigeria, Ghana and Ivory Coast);
* 1.5 million tons of [[maize]];
* 758 thousand tons of [[cotton]] (12th largest producer in the world);
* 598 thousand tons of [[palm oil]];
* 459 thousand tons of [[rice]];
* 372 thousand tons of [[pineapple]];
* 319 thousand tons of [[sorghum]];
* 253 thousand tons of [[tomato]];
* 225 thousand tons of [[peanut]];
* 221 thousand tons of [[soy]];
* 215 thousand tons of [[cashew nuts]] (5th largest producer in the world, losing only Vietnam, India, Ivory Coast and Philippines);
In addition to smaller productions of other agricultural products.<ref>{{cite web| url = http://www.fao.org/faostat/en/#data/QC/| title = Benin production in 2018, by FAO}}</ref>
==Financial Sector==
{{one source|date=June 2014}}
Benin's financial sector is dominated by banks, and in general remains shallow. However, a series of reforms were undertaken in the 1990s, which resulted in the consolidation of the banking sector and in the privatization of all state banks.
A legal framework regarding licensing, bank activities, organizational and capital requirements, inspections and sanctions (all applicable to all countries of the Union) is in place and underwent significant reforms in 1999. There is no customer deposit insurance system.
Benin has a lively and diversified microfinance sector. Data from 2003 by the Central Bank stated a penetration rate of microfinance services of almost 60 percent. In 2006 the Ministry of Microfinance and Employment of Youth and Women counted 762 organizations with 1308 branches, including Cooperatives, NGOs, Savings/Credit Associations and government projects. Programmes for strengthening the sector are carried out on national and regional levels, such as the PRAFIDE (Programme Régional d’Appui à la finance Décentralisée). The microfinance sector is also subject to supervision through the Central Bank as well as the responsible Ministry for Microfinance and Employment of Youth and Women.
Benin is member of the Bourse Regionale des Valeures Mobilières (BRVM) located in Abidjan, Côte d'Ivoire. Stocks were issued by a number of companies in the region. Listed bonds were partly issued by companies and partly by governments of the West African Monetary and Economic Union (UEMOA).
The payment and settlement system and clearing mechanisms were reformed in 2004 through the BCEAO and offer RTGS and SWIFT access to banks, financial institutions, the stock exchange as well as the Central bank and special banks.<ref>{{Cite web |url=http://www.mfw4a.org/benin/benin-financial-sector-profile.html |title=MFW4A Benin: Financial Sector Profile |access-date=30 November 2010 |archive-url=https://web.archive.org/web/20110513105544/http://www.mfw4a.org/benin/benin-financial-sector-profile.html |archive-date=13 May 2011 |url-status=dead }}</ref>
*[[Banque Internationale du Bénin]] (BI.BE)
*[[Bank of Africa]] Benin
*[[Continental Bank]] Benin
*[[Diamond Bank Benin]] (DBB)
*[[Ecobank]]
*[[Financial Bank]]
*[[Finadev]]
*[[Caisse Nationale d'Epargne]]
*[[Credit du Bénin]]
*[[Equibail]]
* United Bank of Africa
* Africa Bank for the Industry and the trade
* Sahelo-Saharian Bank of the Industry and Trade Development
== Data ==
The following table shows the main economic indicators in 1980–2017.<ref>{{cite web|title=Report for Selected Countries and Subjects|url=https://www.imf.org/external/pubs/ft/weo/2018/01/weodata/weorept.aspx?pr.x=70&pr.y=2&sy=1980&ey=2023&scsm=1&ssd=1&sort=country&ds=.&br=1&c=638&s=NGDP_RPCH,PPPGDP,PPPPC,PCPIPCH,GGXWDG_NGDP&grp=0&a=|access-date=2018-09-09|language=en-US}}</ref>
{| class="wikitable" style="text-align:center; vertical-align:middle;"
|- style="font-weight:bold;"
! Year
! GDP
(in bil. US$ PPP)
! GDP per capita
(in US$ PPP)
!GDP
(in bil. US$ nominal)
! GDP growth<br />(real)
! Inflation<br />(in Percent)
! Government debt<br />(Percentage of GDP)
|-
| style="font-weight:bold;" | 1980
| 2.69
| 740
|2.30
| 9.3%
| 9.6%
| ...
|-
| style="font-weight:bold;" | 1985
| 3.70
| 866
|1.58
| 4.3%
| 1.2%
| ...
|-
| style="font-weight:bold;" | 1990
| 4.75
| 954
|2.89
| 9.0%
| 1.1%
| ...
|-
| style="font-weight:bold;" | 1995
| 6.59
| 1,115
|2.99
| 6.0%
| 14.5%
| ...
|-
| style="font-weight:bold;" | 2000
| 9.06
| 1,321
|3.52
| 4.9%
| 4.2%
| 54%
|-
| style="font-weight:bold;" | 2005
| 12.33
| 1,545
|6.57
| 1.7%
| 5.4%
| 39%
|-
| style="font-weight:bold;" | 2006
| 13.22
| 1,608
|7.03
| 3.9%
| 3.8%
| 11%
|-
| style="font-weight:bold;" | 2007
| 14.38
| 1,701
|8.17
| 6.0%
| 1.3%
| 20%
|-
| style="font-weight:bold;" | 2008
| 15.38
| 1,768
|9.79
| 4.9%
| 7.9%
| 25%
|-
| style="font-weight:bold;" | 2009
| 15.86
| 1,773
|9.73
| 2.3%
| 0.4%
| 26%
|-
| style="font-weight:bold;" | 2010
| 16.39
| 1,782
|9.54
| 2.1%
| 2.2%
| 29%
|-
| style="font-weight:bold;" | 2011
| 17.23
| 1,821
|10.69
| 3.0%
| 2.7%
| 30%
|-
| style="font-weight:bold;" | 2012
| 18.39
| 1,890
|11.15
| 4.8%
| 6.7%
| 27%
|-
| style="font-weight:bold;" | 2013
| 20.03
| 2,003
|12.52
| 7.2%
| 1.0%
| 25%
|-
| style="font-weight:bold;" | 2014
| 21.69
| 2,111
|13.29
| 6.4%
| −1.1%
| 30%
|-
| style="font-weight:bold;" | 2015
| 22.38
| 2,121
|11.39
| 2.1%
| 0.3%
| 42%
|-
| style="font-weight:bold;" | 2016
| 23.57
| 2,175
|11.82
| 4.0%
| −0.8%
| 50%
|-
| style="font-weight:bold;" | 2017
| 25.33
| 2,277
|12.70
| 5.6%
| 0.1%
| 55%
|}
==See also==
*[[Agriculture in Benin]]
*[[Fishing in Benin]]
* [[United Nations Economic Commission for Africa]]
*[[Foreign trade of Benin]]
==References==
{{Reflist}}
*{{Cite book
| last = Mulindabigwi
| first = Valens
| title = Influence des systemes agraires sur l'utilisation des terroirs, la sequestration du carbone et la sécurité alimentaire dans le bassin versant de l'Oueme superieur au Bénin
| publisher = Cuvillier
| year = 2006
| location = Göttingen
| isbn = 978-3-86537-871-2}}
{{CIA World Factbook}}
==External links==
* [https://web.archive.org/web/20160303234153/http://bankinginfo.org/central_bank/benin.htm Benin Banking Information]
* [http://www.resimao.org West African Agricultural Market Observer/Observatoire du Marché Agricole  (RESIMAO)], a project of the West-African Market Information Network (WAMIS-NET), provides live market and commodity prices from fifty seven regional and local public agricultural markets across Benin, Burkina Faso, Côte d'Ivoire, Guinea, Niger, Mali, Senegal, Togo, and Nigeria.  Sixty commodities are tracked weekly. The project is run by the Benin Ministry of Agriculture, and a number of European, African, and United Nations agencies.
* [http://www.trademap.org/open_access/Index.aspx?proceed=true&reporter=204 Benin latest trade data on ITC Trade Map]
{{Benin topics}}
{{Africa in topic|Economy of}}
{{DEFAULTSORT:Economy of Benin}}
[[Category:Economy of Benin| ]]
[[Category:World Trade Organization member economies|Benin]]
[[Category:African Union member economies|Benin]]