Home > Economy of Benin

The economy of Benin remains underdeveloped and dependent on subsistence agriculture, cotton Cotton accounts for 40% of GDP and roughly 80% of official export receipts. There is also production of textiles, palm products, and cocoa. 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.

Economic Development
Since the transition to a democratic government in 1990, Benin has undergone a remarkable 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 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. 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 NetherlandsDutch redirects here. For other uses, see Dutch (disambiguation). The Netherlands ( Dutch: Nederland is the European part of the Kingdom of the Netherlands, a constitutional monarchy. It is located in northwestern Europe and borders the North Sea, Belgium, KoreaKorea is a formerly unified country, situated on the Korean Peninsula in north East Asia adjacent to China in the west and Russia in the north. When World War II ended in 1945, the country was divided into two: the Republic of Korea ( South Korea) and the, JapanJapan (, Nippon/Nihon literally "the origin of the sun") is a country in East Asia situated on a chain of islands east of the Asian continent on the western edge of the Pacific Ocean. The largest of these islands are, from north to south, Hokkaido , Honsh, and IndiaThe Republic of India is a large multicultural country in South Asia, with a population of over one billion. The Indian economy is the fourth largest in the world, in terms of purchasing power parity, and is the world's second-fastest growing economy.. France is Benin's leading source for imports. Benin is also a member of the West AfricaWest Africa is an area with a great span of geography, bioregions, and cultures. The continent of Africa is principally oriented on a north-south axis, with a bulge to the west, and it is this bulge which may be considered West Africa. The southern and ean economic community 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 NigeriaThe Federal Republic of Nigeria is a country in West Africa. It borders on Benin in the west, Chad and Cameroon in the east, Niger in the north and the Gulf of Guinea in the south. Major cities include the capital Abuja, the former capital Lagos, Abeokuta, particularly fuel shortages.

GDP: purchasing power parity - $8.1 billion (1999 est.)

GDP - real growth rate: 5% (1999 est.)

GDP - per capita: purchasing power parity - $1,300 (1999 est.)

GDP - composition by sector:
agriculture: 34%
industry: 14%
services: 52% (1997)

Population below poverty line: 33% (1995 est.)

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

Inflation rate (consumer prices): 3% (1999 est.)

Labor force: NA

Unemployment rate: NA%

Budget:
revenues: $299 million
expenditures: $445 million, including capital expenditures of $14 million (1995 est.)

Industries: textiles, cigarettes; beverages, food; construction materials, petroleum

Industrial production growth rate: NA%

Electricity - production: 6 GWh (1998)

Electricity - production by source:
fossil fuel: 100%
hydro: 0%
nuclear: 0%
other: 0% (1998)

Electricity - consumption: 276 GWh (1998)

Electricity - exports: 0 kWh (1998)

Electricity - imports: 270 GWh (1998)

Agriculture - products:

Exports: $396 million (f.o.b., 1999)

Exports - commodities:

Exports - partners:

Imports: $566 million (f.o.b., 1999)

Imports - commodities: foodstuffs, tobacco, petroleum products, capital goods

Imports - partners:

Debt - external: $1.6 billion (1997 est.)

Economic aid - recipient: $281.2 million (1995)

Currency: 1 Communaute Financiere Africaine franc (CFAF) = 100 centimes

Exchange rates: CFA francs (CFAF) per US$1 - 647.25 (January 2000), 615.70 (1999), 589.95 (1998), 583.67 (1997), 511.55 (1996), 499.15 (1995)
note: from 1 January 1999, the CFAF is pegged to the euro at a rate of 655.957 CFA francs per euro

Fiscal year: calendar year