Economy of Benin
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{{Infobox Economy
|country = Benin
|image =
|width =
|caption =
|currency = [[CFA franc]] (XOF)
|year = Calendar year
|organs = [[African Union|AU]], [[ECOWAS]], [[World Trade Organization|WTO]]
|rank = 139
|gdp = $12.18 billion {2007 est.)
|growth = 4.5% (2007 est.)
|per capita = $1,500 (2007 est.)
|sectors = [[Agriculture]] (33.2%), [[industry]] (14.5%), [[Service (economics)|services]] (52.3%) (2007 est.)
|inflation = 2.5% (2007 est.)
|poverty = 37.4% (2007 est.)
|gini =
|labor = 5.38 million (2007 est.)
|occupations =
|unemployment =
|industries = [[Textile]]s, [[food]] processing, [[construction]] materials, [[cement]]
|exports = $708.7 million (2007 est.)
|export-goods = [[Cotton]], [[cashew]]s, [[shea butter]], [[textile]]s, [[palm tree|palm]] products, [[seafood]]
|export-partners = [[People's Republic of China]] 20.9%), [[Indonesia]] 7.7%, [[India]] 7%, [[Netherlands]] 6.2%, [[Niger]] 5.7%, [[Togo]] 4.6%, [[Nigeria]] 4.3% (2006)
|imports = $976.3 million (2007 est.)
|import-goods = [[Foodstuff]]s, capital goods, [[petroleum]] products
|import-partners = [[People's Republic of China]] 46.6%, [[France]] 7.5%, [[Thailand]] 6% (2006)
|gross external debt = $1.2 billion (2007)
|debt =
|revenue = $936.9 million
|expenses = $1.226 billion (2007 est.)
|aid =
|cianame = bn
|spelling =
}}
The '''economy of [[Benin]]''' remains underdeveloped and dependent on [[subsistence agriculture]] and [[cotton]]. Cotton accounts for 40% of GDP and roughly 80% of official export receipts. There is also production of [[textile]]s, palm products, and [[cocoa]]. [[Maize]] (corn), [[bean]]s, [[rice]], [[peanut]]s, [[cashew]]s, [[pineapple]]s, [[cassava]], [[yam (vegetable)|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 [[brewing|brewer]] acquired the former state-run brewery. Smaller businesses are privately owned by Beninese citizens, but some firms are foreign owned, primarily [[France|French]] and [[Lebanon|Lebanese]]. The private commercial and agricultural sectors remain the principal contributors to growth.
==Economic Development==
Since the transition to a [[Democracy|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 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 [[West Africa]]n economic community [[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 labor|child labour]], and the continuing issue of [[unfree labour|forced labour]].<ref>{{cite web
| title=Serious violations of core labour standards in Benin, Burkina Faso and Mali
| work=ICFTU Online
| url=http://www.icftu.org/displaydocument.asp?Index=991220267&Language=EN
| accessdate=2007-07-30
}}</ref>
==References==
{{reflist}}
*{{factbook}}
==External links==
*{{dmoz|Regional/Africa/Benin/Business_and_Economy/Economic_Development}}
*[http://www.resimao.org West African Agricultural Market Observer/Observatoire du Marché Agricole (RESIMAO)], a project of the West-African Market Information Network (WAMIS-NET), provides live market and commodity prices from fifty seven regional and local public agricultural markets across Benin, Burkina Faso, Côte d'Ivoire, Guinea, Niger, Mali, Senegal, Togo, and Nigeria. Sixty commodities are tracked weekly. The project is run by the Benin Ministry of Agriculture, and a number of European, African, and United Nations agencies.
{{Africa in topic|Economy of}}
[[Category:Economy of Benin| ]]
[[Category:WTO member economies|Benin]]
[[Category:African Union member economies|Benin]]
[[af:Ekonomie van Benin]]
[[fr:Économie du Bénin]]
[[gl:Economía de Benín]]
[[io:Ekonomio di Benin]]
[[oc:Economia de Benin]]
[[pt:Economia do Benim]]
[[ro:Economia Beninului]]