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Currency | West African CFA franc (XOF, CFA) |
---|---|
Calendar year | |
Trade organisations | AU, AfCFTA (signed), ECOWAS, CEN-SAD, WTO |
Country group | |
Statistics | |
Population | 11,485,048 (2018) [3] |
GDP | |
GDP rank | |
GDP growth |
|
GDP per capita | |
GDP per capita rank | |
GDP by sector |
|
1.0% (2020 est.) [4] | |
Population below poverty line | |
47.8 high (2015) [8] | |
Labour force | |
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 | |
Imports | $2.787 billion (2017 est.) [6] |
Import goods | Foodstuffs, capital goods, petroleum products |
Main import partners | |
−$1.024 billion (2017 est.) [6] | |
Gross external debt | $2.804 billion (31 December 2017 est.) [6] |
Public finances | |
54.6% of GDP (2017 est.) [6] | |
−6.2% (of GDP) (2017 est.) [6] | |
Revenues | 1.578 billion (2017 est.) [6] |
Expenses | 2.152 billion (2017 est.) [6] |
| |
$698.9 million (31 December 2017 est.) [6] | |
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.
Since the transition to a 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 labour, and the continuing issue of forced labour. [14]
In December 2014, the Bureau of International Labor Affairs issued a List of Goods Produced by Child Labor or Forced Labor [15] 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.
Benin produced in 2018:
In addition to smaller productions of other agricultural products. [16]
This article relies largely or entirely on a single source .(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. [17]
The following table shows the main economic indicators in 1980–2017. [18]
Year | GDP (in bil. US$ PPP) | GDP per capita (in US$ PPP) | GDP (in bil. US$ nominal) | GDP growth (real) | Inflation (in Percent) | Government debt (Percentage of GDP) |
---|---|---|---|---|---|---|
1980 | 2.69 | 740 | 2.30 | 9.3% | 9.6% | ... |
1985 | 3.70 | 866 | 1.58 | 4.3% | 1.2% | ... |
1990 | 4.75 | 954 | 2.89 | 9.0% | 1.1% | ... |
1995 | 6.59 | 1,115 | 2.99 | 6.0% | 14.5% | ... |
2000 | 9.06 | 1,321 | 3.52 | 4.9% | 4.2% | 54% |
2005 | 12.33 | 1,545 | 6.57 | 1.7% | 5.4% | 39% |
2006 | 13.22 | 1,608 | 7.03 | 3.9% | 3.8% | 11% |
2007 | 14.38 | 1,701 | 8.17 | 6.0% | 1.3% | 20% |
2008 | 15.38 | 1,768 | 9.79 | 4.9% | 7.9% | 25% |
2009 | 15.86 | 1,773 | 9.73 | 2.3% | 0.4% | 26% |
2010 | 16.39 | 1,782 | 9.54 | 2.1% | 2.2% | 29% |
2011 | 17.23 | 1,821 | 10.69 | 3.0% | 2.7% | 30% |
2012 | 18.39 | 1,890 | 11.15 | 4.8% | 6.7% | 27% |
2013 | 20.03 | 2,003 | 12.52 | 7.2% | 1.0% | 25% |
2014 | 21.69 | 2,111 | 13.29 | 6.4% | −1.1% | 30% |
2015 | 22.38 | 2,121 | 11.39 | 2.1% | 0.3% | 42% |
2016 | 23.57 | 2,175 | 11.82 | 4.0% | −0.8% | 50% |
2017 | 25.33 | 2,277 | 12.70 | 5.6% | 0.1% | 55% |
The economy of Angola remains heavily influenced by the effects of four decades of conflict in the last part of the 20th century, the war for independence from Portugal (1961–75) and the subsequent civil war (1975–2002). Poverty since 2002 is reduced over 50% and a third of the population relies on subsistence agriculture. Since 2002, when the 27-year civil war ended, government policy prioritized the repair and improvement of infrastructure and strengthening of political and social institutions. During the first decade of the 21st century, Angola's economy was one of the fastest-growing in the world, with reported annual average GDP growth of 11.1 percent from 2001 to 2010. High international oil prices and rising oil production contributed to strong economic growth, although with high inequality, at that time. 2022 Trade surplus was &30B/2012 $48B
The economy of Burkina Faso is based primarily on subsistence farming and livestock raising. Burkina Faso has an average income purchasing-power-parity per capita of $1,900 and nominal per capita of $790 in 2014. More than 80% of the population relies on subsistence agriculture, with only a small fraction directly involved in industry and services. Highly variable rainfall, poor soils, lack of adequate communications and other infrastructure, a low literacy rate, and a stagnant economy are all longstanding problems of this landlocked country. The export economy also remained subject to fluctuations in world prices.
The economy of Burundi is $3.436 billion by gross domestic product as of 2018, being heavily dependent on agriculture, which accounts for 32.9% of gross domestic product as of 2008. Burundi itself is a landlocked country lacking resources, and with almost nonexistent industrialization. Agriculture supports more than 70% of the labor force, the majority of whom are subsistence farmers.
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The economy of the Central African Republic is $2.321 billion by gross domestic product as of 2019, even lower than much smaller countries such as Barbados with an estimated annual per capita income of just $805 as measured by purchasing power parity in 2019.
The economy of Ethiopia is a mixed and transition economy with a large public sector. The government of Ethiopia is in the process of privatizing many of the state-owned businesses and moving toward a market economy. The banking, telecommunication and transportation sectors of the economy are dominated by government-owned companies.
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The economy of Laos is a lower-middle income developing economy. Being one of the socialist states, the Lao economic model resembles the Chinese socialist market and/or Vietnamese socialist-oriented market economies by combining high degrees of state ownership with openness to foreign direct investment and private ownership in a predominantly market-based framework.
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The economy of the Republic of the Congo is a mixture of subsistence hunting and agriculture, an industrial sector based largely on petroleum extraction and support services. Government spending is characterized by budget problems and overstaffing. Petroleum has supplanted forestry as the mainstay of the economy, providing a major share of government revenues and exports. Nowadays the Republic of the Congo is increasingly converting natural gas to electricity rather than burning it, greatly improving energy prospects.
The economy of Sudan is largely based on agriculture and oil exports, with additional revenue coming from mining and manufacturing. GDP growth registered more than 10% per year in 2006 and 2007. Sudan had $30.873 billion by gross domestic product as of 2019, and has been working with the International Monetary Fund (IMF) to implement macroeconomic reforms, including a managed float of the exchange rate. Sudan began exporting crude oil in the last quarter of 1999.
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This article incorporates public domain material from The World Factbook. CIA.