In 2023, the Beninese economy recorded a growth of 6.4%, mainly thanks to the agriculture and construction sectors.


According to the International Monetary Fund (IMF), Benin's economic growth "should have progressed annually by 6.6% in the second quarter of 2024, compared to 6.3% in the first quarter."

In fact, Benin's macroeconomic performance remains solid despite a challenging external environment, the financial institution stated following a visit by one of its teams to Benin to "assess recent economic developments, discuss the outlines and orientations of public policy within the framework of the 2025 budget."

This dynamic (of economic growth) should continue in the coming quarters," stated Constant Lonkeng, who was leading the IMF team.

Furthermore, he noted that "although overall inflation was limited to 3% in August (year-on-year), food prices recorded an increase of 6.6%, partly due to a rise in exports to neighboring countries in a context of difficult regional security."

On the other hand, according to World Bank forecasts from May 2024, the Beninese economy is expected to register an average growth of 6.2% per year between 2024 and 2026, mainly due to increased investments and the expansion of the Glo-Djigbé Industrial Zone (GDIZ).

This industrial zone is dedicated to the local processing of agricultural products such as cotton, cashew nuts, pineapple, and shea nuts.

For its part, in early September, Fitch indicated that the growth of the Beninese economy will remain robust, "reaching an average of 6.6% between 2024 and 2026," but also noted the major challenges the country faces.

The economy remains small, vulnerable, and highly dependent on agriculture," stated the rating agency.

Article source:africanews