- Benin's economy continues to demonstrate strong momentum despite a challenging external environment. Real GDP grew at 8.2 percent year-on-year in the first half of 2026, supported by manufacturing, construction, and trade activity, while inflation remained low.
- Maintaining prudent fiscal policy, strengthening domestic revenue mobilization, and protecting priority social spending will be essential to preserve fiscal and debt sustainability and make growth more inclusive. The mission welcomed the authorities' recent actions to strengthen fiscal and debt reporting.
- Structural reforms to facilitate formalization, improve productivity, and enhance resilience to shocks continue and will foster more inclusive medium-term growth.
Cotonou, Benin: An International Monetary Fund (IMF) team led by Ms. Sonali Das visited Cotonou from October 27-November 6, 2026, to hold discussions for the 2026 Article IV Consultation with the Republic of Benin.
At the end of the mission, Ms. Das issued the following statement:
"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."
"The medium-term outlook remains favorable, supported by continued improvements in increasing the domestic value-addition of agricultural commodities, economic transformation, and ongoing reforms. Downside risks include 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. Stronger performance of the special economic zones, deeper regional cooperation, and faster implementation of structural reforms could bolster investment, exports, and employment."
"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."
"Sustained domestic revenue mobilization will be essential to create fiscal space for development priorities. Efforts should focus on broadening the tax base, rationalizing exemptions and tax expenditures, continuing to strengthen tax and customs administration, and improving compliance. Ongoing work to update the Single Social Registry and make it more dynamic should support improved targeting and monitoring of social programs and help ensure that support reaches those most in need."
"We welcome the authorities' actions to strengthen fiscal and debt transparency, including revision to the domestic legal framework for public debt management and publication of restated debt data in line with international standards. Further strengthening of public financial management, including oversight of state-owned enterprises, fiscal-risk reporting, and procurement, would reinforce accountability and help safeguard public resources."
"The financial system remains broadly sound and credit to the private sector continues to expand. Increasing digital payments and improving credit registries, collateral frameworks, and financial infrastructure would help ease financing constraints for small and medium-sized enterprises."
"Structural reforms aim at supporting more private-sector led and inclusive growth. To this end, the authorities plan to facilitate economic formalization, accelerate investment in human capital, and improve agricultural productivity."
"The authorities remain committed to macroeconomic stability and fiscal discipline, with a renewed focus on improving social outcomes. IMF staff stand ready to continue supporting Benin through policy advice, capacity development, and close engagement."
"The mission met with Minister of Economy and Finance Mr. Aristide Medenou; Minister of Agriculture, Livestock and Fishing, Mr. Adin Yeton Bloukounon Goubalan; Minister in Charge of Finance and Microfinance Mr. Nicolas Yenoussi; Minister in Charge of the Budget and Public Service Mr. Rodrigue Chaou; Minister in Charge of External Resources Mobilization and Debt Management Mr. Hugues Lokossou; National Director of the BCEAO Mr. Emmanuel Assilamehoo; and other senior officials, representatives of civil society, representatives of businesses and farmers, donors and other stakeholders."
"The IMF team would like to thank the Beninese authorities for their warm hospitality and for the open and constructive dialogue."
