An International Monetary Fund team led by Ms. Sonali Das visited Cotonou, Benin, from 27 October to 6 November 2026. Ms. Sonali Das stated, "The medium-term outlook remains favorable, supported by continued improvements in increasing the domestic value-addition of agricultural commodities, economic transformation, and ongoing reforms." She identified downside risks, noting that "commodity prices remaining higher or more volatile for longer, tighter global financial conditions, stronger trade fragmentation and more adverse regional security developments, and extreme climate events" could affect the economy. Ms. Sonali Das added, "Stronger performance of the special economic zones, deeper regional cooperation, and faster implementation of structural reforms could bolster investment, exports, and employment."
Economic Growth and Resilience
Real GDP in Benin expanded by 8.2 percent on a year-on-year basis during the first half of 2026. This data point reflects the economic activity recorded within the country throughout the initial six months of the calendar year. The growth figure captures performance across various sectors of the national economy prior to the conclusion of the International Monetary Fund mission's visit to Cotonou. No additional growth projections for the remainder of the year were provided in the current report.
Fiscal Performance and Outlook
Real GDP growth reached 8.1 percent in 2025. Ms. Sonali Das, IMF mission lead, stated: "Benin's economy has continued to demonstrate resilience in the face of multiple shocks. Real GDP growth reached 8.1 percent in 2025, its highest level in nearly two decades, reflecting broad-based growth across sectors, and activity remained robust in the first half of 2026. Growth is projected to decelerate to 7.8 percent in 2026 and around 7.0 percent in 2027, due to the effects of the gradual pass-through of higher transport and import costs. Inflation remains contained and is expected to increase to the 2 percent target in 2027."
Fiscal performance in 2025 showed improvement as the overall deficit declined to 2.3 percent of GDP from 2.5 percent in 2024. Ms. Sonali Das noted: "Fiscal performance in 2025 was robust, with the overall deficit estimated to have declined to 2.3 percent of GDP, from 2.5 percent in 2024, supported by strong revenue collection. The deficit is projected at 2.3 percent of GDP in 2026 and 2.9 percent in 2027, remaining below the WAEMU ceiling of 3 percent. For 2028 and the medium term, staff recommends maintaining prudent fiscal policy while protecting priority social spending and providing well-targeted support to vulnerable households."
