Highlights 

• After a slowdown in 2015, the economic activity has recorded an acceleration over the last four years in Benin. The real GDP growth rate thus went from 3.3% in 2016 to 6.7% in 2018, before settling at 6.9% in 2019. This growth is driven particular by the implementation of major projects under the Government’s Action Program (PAG), the improvement of agricultural production and that processing activities. Due to the COVID-19 crisis, the growth rate would decrease to 3.5% in 2020, down to 3.4 percentage points compared to 2019.
• Inflation in Benin remains contained in the WAEMU community standard of 3 % over the 2015-2019 period below the 2.0%. In 2020, the inflation rate is projected to 2.1%. 
• The budget deficit decreased over the 2015-2017 period while remaining above the community standard of 3 %. It is estimated to 0.5 % of GDP in 2019 against 2.9% of GDP a year earlier. The budget deficit related to GDP would increase above the community standard in 2020 at 3.4%. 
• As for the current account deficit, it stood at 4.9 % of GDP in 2019 after 4.6 % in 2018. In 2020, it would reach 5.1 % of GDP.
• The debt-to-GDP ratio decrease to 39.4 % in 2019 after 41.0 % in 2018, in line with the improvement in the budget deficit and the current account deficit. It would be in slight increase in 2020 at 39.8%.  
• In addition to the prevalent political stability, Benin has several structural advantages. These include:
  • A seaport used by several landlocked countries; 
  • Bordering Nigeria, the most populous country in West Africa, particularly through re-export activities;
  • A stable anchor of its currency to the euro; 
  • A coherent and ambitious economic program.