Benin: 2017 Article IV Consultation and First Review Under the Extended Credit Facility Arrangement and Request for Modifications of Performance Criteria-Press Release; Staff Report; and Statement by the Executive Director for Benin

IMF Staff Country Reports, January 5, 2018

Source details

Canonical URL: Benin: 2017 Article IV Consultation and First Review Under the Extended Credit Facility Arrangement and Request for Modifications of Performance Criteria-Press Release; Staff Report; and Statement by the Executive Director for Benin

Benin exhibited mixed macroeconomic performance in 2016 while weathering negative spillovers from a difficult external environment.
Growth was about 4 percent in 2016.
Inflation remained negative in 2016 and through end-August 2017 but is forecasted to average 0.6 percent in 2017.
Cuts in recurrent spending contributed to a smaller than programmed budget deficit of 6.0 percent of GDP in 2016, down from 8.0 percent in 2015.

2016 outcomes:
- Growth: about 4 percent.
- Inflation: negative (2016 and through end-August 2017).
Drivers of the expected recovery in 2017–18:
- Strong agricultural production.
- An increase in public investment.
- A buoyant tertiary sector.

The medium-term outlook shows favorable signs characterized by:
- High economic growth.
- Low inflation.
Short-term forecast:
- Inflation is forecasted to average 0.6 percent in 2017.

Budget deficit evolution:
- 2015: 8.0 percent of GDP.
- 2016: 6.0 percent of GDP.
Fiscal policy action noted:
- Cuts in recurrent spending helped reduce the budget deficit relative to the program.

Subject: Capital spending; Expenditure; Public debt; Public investment and public-private partnerships (PPP); Public investment spending; Revenue administration.
Keywords: Africa; authority; Benin; Benin authorities; Beninese authorities; Capital spending; convergence criterion; CR; development goal; executive board discussion; fiscal consolidation effort; Global; ISCR; long-term debt service profile; private sector; Public investment and public-private partnerships (PPP); Public investment spending; West Africa.