Part 99

Economy

Economy - overview: The economy of Benin remains underdeveloped and dependent on subsistence agriculture, cotton production, and regional trade. Growth in real output, which had averaged a sound 4% in 1990-95, rose to 5.5% in 1996. Rapid population growth offset much of this growth in output. Inflation jumped to 55% in 1994 (compared to 3% in 1993) following the 50% currency devaluation in January 1994, but has subsided gradually over the past two years, with 14.5% inflation in 1995 and a target of 4.5% inflation in 1996. Commercial and transport activities, which make up a large part of GDP, are extremely vulnerable to developments in Nigeria as evidenced by decreased reexport trade in 1994 due to a severe contraction in Nigerian demand. Support by the Paris Club and official bilateral creditors has eased the external debt situation in recent years. The government, still burdened with money-losing state enterprises and a bloated civil service, has been gradually implementing a World Bank supported structural adjustment program since 1991.

GDP: purchasing power parity - $8.2 billion (1996 est.)

GDP - real growth rate: 5.5% (1996 est.)

GDP - per capita: purchasing power parity - $1,440 (1996 est.)

GDP - composition by sector: agriculture: 36.8% industry: 12.6% services : 50.6% (1993)

Inflation rate - consumer price index: 14.5% (1995)

Labor force: NA

Unemployment rate: NA%

Budget: revenues: $272 million (1993 est.) expenditures: $375 million, including capital expenditures of $84 million (1993 est.)

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

Industrial production growth rate: NA%

Electricity - capacity: 28,000 kW (1992)

Electricity - production: 10 million kWh (1994)

Electricity - consumption per capita: 45 kWh (1994 est.)

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

Exports: total value : $300 million (f.o.b., 1995) commodities: cotton, crude oil, palm products, cocoa partners: Brazil 18%, Portugal 14%, Morocco, Libya, France

Imports: total value: $380 million (c.i.f., 1995) commodities : foodstuffs, beverages, tobacco, petroleum products, intermediate goods, capital goods, light consumer goods partners: France 27%, Thailand 9%, China, Hong Kong

Debt - external: $1.6 billion (1994 est.)

Economic aid: recipient : ODA, $NA

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

Exchange rates: CFA francs (CFAF) per US$1 - 541.69 (January 1997), 511.55 (1996), 499.15 (1995), 555.20 (1994), 283.16 (1993), 264.69 (1992) note: beginning 12 January 1994 the CFA franc was devalued to CFAF 100 per French franc from CFAF 50 at which it had been fixed since 1948

Fiscal year: calendar year

@Benin:Communications

Telephones: 16,200 (1986 est.)

Telephone system: domestic: fair system of open wire and microwave radio relay international : satellite earth station - 1 Intelsat (Atlantic Ocean); submarine cable

Radio broadcast stations: AM 2, FM 2, shortwave 0

Radios: NA