Economy ———-
Economic 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 1990-94, rose to 6% in 1995. Rapid population growth, now 3.3% per year, 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 subsided gradually in 1995. Commercial and transport activities, which make up 37% 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 - $7.6 billion (1995 est.)
GDP real growth rate: 6% (1995 est.)
GDP per capita: $1,380 (1995 est.)
GDP composition by sector: agriculture: 36.8% industry: 12.6% services: 50.6% (1993)
Inflation rate (consumer prices): 55% (1994 est.)
Labor force: 1.9 million (1987) by occupation: agriculture 60%, transport, commerce, and public services 38%, industry less than 2%
Unemployment rate: NA%
Budget:
revenues: $272 million (1993 est.)
expenditures: $375 million, including capital expenditures of $84
million (1993 est.)