What to know about the economic and financial situation of Benin?

What to know about the economic and financial situation of Benin?

You are an economic operator, an individual, you like information and you would like to know the economic and financial situation of Benin. Discover in this article the state of the economy of Benin.

Structure and economic growth of Benin

With a GDP which should have reached, in 2020, 8,814 billion XOF (15.4 billion USD) for an estimated population of 12.1 million inhabitants, Benin has entered the category of middle-income countries (lower bracket). with GDP / capita of 1250 USD. The economy is oriented towards agriculture and the processing industries of agricultural products. The primary sector represents 28.1% of the GDP, the secondary sector 14.6% including 6% for the agro-food industries and 4.4% for the construction industry, the tertiary sector 48.8% of the GDP including 13% for trade and 9% for transport.
The acceleration in growth, which was significant in 2018 since it rose from + 5.7% to + 6.7% in one year, continued in 2019 with GDP up 6.9%, despite the closure of the Nigerian border since August 21, 2019. In 2020, Benin was however confronted with two exogenous shocks, that of the crisis with Nigeria which continues and that of the COVID 19 pandemic. slowdown in activity, which would however remain positive with a GDP growth rate of 2% and a rebound of 5% expected in 2021.
The state budget situation was under pressure in 2020 due to the double impact of a fall in domestic income due to the health crisis (including temporary tax cuts) but also to the Nigerian crisis and increased spending. . It is thus 200 billion FCFA (about 2.3 points of GDP) of tax revenue which should not be collected in relation to the objective of the LFI 2020. At the same time, expenditure increases by 200 billion XOF, because of additional burdens that weighed on the health sector, transfers to vulnerable populations and to affected economic sectors.

View of the debt situation

Benin's public debt at the end of September 2020 stood at CFAF 4,290 billion (EUR 6.5 billion) - 48.7% of GDP - including 46.6% of internal debt - CFAF 1,997 billion or EUR 3 billion - and 53 , 4% of external debt - 2293 billion FCFA or 3.5 billion EUR-. The reprofiling that took place between late 2018 and early 2019 as well as the issuance of a EUR 500 million Eurobond in March 2019 had contributed to reversing the respective weight of internal debt and external debt which stood at the end of 2018, respectively. at 53% and 47% for a total debt of 3252 billion XOF (4.96 billion EUR).

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