Economy of Benin

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Economy of Benin

Cotonou is the largest city and economic capital of Benin
Currency	West African CFA franc (XOF, CFA)
Fiscal year	Calendar year
Trade organisations	AU, AfCFTA (signed), ECOWAS, CEN-SAD, WTO
Country group	Least Developed[1] Lower-middle income economy[2]
Statistics
Population	11,485,048 (2018)[3]
GDP	$14.374 billion (nominal, 2019 est.)[4] $40.717 billion (PPP, 2019 est.)[4]
GDP rank	124th (nominal, 2019) 115th (PPP, 2019)
GDP growth	5.8% (2017) 6.7% (2018) 6.4% (2019e) 6.7% (2020f)[5]
GDP per capita	$1,217 (nominal, 2019 est.)[4] $3,446 (PPP, 2019 est.)[4]
GDP per capita rank	157th (nominal, 2019) 153rd (PPP, 2019)
GDP by sector	agriculture: 26.1% industry: 22.8% services: 51.1% (2017 est.)[6]
Inflation (CPI)	1.0% (2020 est.)[4]
Population below poverty line	36.2% (2011 est.)[6] 49.5% on less than $1.90/day (2015)[7]
Gini coefficient	47.8 high (2015)[8]
Human Development Index	0.520 low (2018)[9] (163rd) 0.327 IHDI (2018)[10]
Labour force	4,862,455 (2019)[11] 70.0% employment rate (2011)[12]
Unemployment	1% (2014 est.)[6]
Main industries	textiles, food processing, construction materials, cement
External
Exports	$1.974 billion (2017 est.)[6]
Export goods	Cotton, cashews, shea butter, textiles, palm products, seafood
Main export partners	Bangladesh 26.9%  India 14.2%  Vietnam 10.4%  China 7.4%  Nigeria 5.7%  Denmark 3.6%  Egypt 3.4%  Niger 3.1% (2019)[6]
Imports	$2.787 billion (2017 est.)[6]
Import goods	Foodstuffs, capital goods, petroleum products
Main import partners	India 13.7%  China 11.1%  Togo 10.9%  France 8.8%  Thailand 5.4%  Belgium 3.8%  UAE 3.4%  Morocco 2.9% (2019)[6]
Current account	−$1.024 billion (2017 est.)[6]
Gross external debt	$2.804 billion (31 December 2017 est.)[6]
Public finances
Government debt	54.6% of GDP (2017 est.)[6]
Budget balance	−6.2% (of GDP) (2017 est.)[6]
Revenues	1.578 billion (2017 est.)[6]
Expenses	2.152 billion (2017 est.)[6]
Credit rating	Standard & Poor's:[13] B (Domestic) B (Foreign) BBB- (T&C Assessment)
Foreign reserves	$698.9 million (31 December 2017 est.)[6]
All values, unless otherwise stated, are in US dollars.

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 textiles, palm products, and cocoa beans. Maize (corn), beans, rice, peanuts, cashews, pineapples, cassava, 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 brewer acquired the former state-run brewery. Smaller businesses are privately owned by Beninese citizens, but some firms are foreign owned, primarily French and Lebanese. The private commercial and agricultural sectors remain the principal contributors to growth.