Benin Economy - 2006

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 six 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. Many of these proposals are included in Benin's application to receive Millennium Challenge Account funding - for which it was a finalist in 2004-05. 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):
$8.669 billion (2005 est.)

GDP (official exchange rate):
$4.312 billion (2005 est.)

GDP - real growth rate:
3.9% (2005 est.)

GDP - per capita (PPP):
$1,100 (2005 est.)

GDP - composition by sector:
agriculture: 33.9%
industry: 13.6%
services: 52.5% (2004 est.)

Labor force:
NA

Unemployment rate:
NA%

Population below poverty line:
33% (2001 est.)

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

Inflation rate (consumer prices):
3.2% (2005 est.)

Investment (gross fixed):
20.1% of GDP (2005 est.)

Budget:
revenues: $766.8 million
expenditures: $1.017 billion; including capital expenditures of $NA (2005 est.)

Agriculture - products:
cotton, corn, cassava (tapioca), yams, beans, palm oil, peanuts; livestock

Industries:
textiles, food processing, construction materials, cement

Industrial production growth rate:
8.3% (2001 est.)

Electricity - production:
69 million kWh (2003)

Electricity - consumption:
538.2 million kWh (2003)

Electricity - exports:
0 kWh (2003)

Electricity - imports:
474 million kWh (2003)

Oil - production:
400 bbl/day (2003)

Oil - consumption:
12,000 bbl/day (2003 est.)

Oil - exports:
NA bbl/day

Oil - imports:
NA bbl/day

Oil - proved reserves:
4.105 million bbl (1 January 2002)

Natural gas - production:
0 cu m (2003 est.)

Natural gas - consumption:
0 cu m (2003 est.)

Natural gas - proved reserves:
1.218 billion cu m (1 January 2002)

Current account balance:
-$155.1 million (2005 est.)

Exports:
$826.9 million f.o.b. (2005 est.)

Exports - commodities:
cotton, crude oil, palm products, cocoa

Exports - partners:
China 29.5%, India 18.8%, Ghana 6.4%, Niger 6%, Indonesia 4.3%, Nigeria 4.3% (2004)

Imports:
$1.043 billion f.o.b. (2005 est.)

Imports - commodities:
foodstuffs, capital goods, petroleum products

Imports - partners:
China 32.5%, France 13.1%, Thailand 6.8%, Cote d'Ivoire 4.5% (2004)

Reserves of foreign exchange and gold:
$523.7 million (2005 est.)

Debt - external:
$1.6 billion (2000)

Economic aid - recipient:
$342.6 million (2000)

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 - 527.47 (2005), 528.29 (2004), 581.2 (2003), 696.99 (2002), 733.04 (2001)