Analysis by Region - Emerging Markets - Benin

Analysis by Region - Emerging Markets - Benin

Real GDP growth in Benin is forecast to ease to 5.7% this year from 6.3% in 2022. This moderation can be ascribed to the downturn in global economic activity, slow growth in Nigeria, and the impact of Niger's border closure amid Ecowas sanctions. That said, this growth figure is still high when compared with that of regional peers. Robust infrastructure investment will be a key driver of the economy in the near term, while political instability in the Sahel region will weigh on the services sector. Also, public spending will give way to higher private consumption as inflation eases in H2 2023. For Benin to sustain strong growth in the long run, structural reforms that reduce spatial inequalities and safeguard against security threats are needed.