## 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](https://www.imf.org/en/publications/cr/issues/2018/01/05/benin-2017-article-iv-consultation-and-first-review-under-the-extended-credit-facility-45533)

## Other formats

- [Markdown version](/en/publications/cr/issues/2018/01/05/benin-2017-article-iv-consultation-and-first-review-under-the-extended-credit-facility-45533/index.md)
- [Structured JSON version](/en/publications/cr/issues/2018/01/05/benin-2017-article-iv-consultation-and-first-review-under-the-extended-credit-facility-45533/index.json)
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## Bibliographic details
- Published: January 5, 2018
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484336533.002

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### Summary findings
- 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.

### Macroeconomic performance and drivers
- 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.

### Medium-term outlook and projections
- 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.

### Fiscal developments
- 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.

### Themes, subject tags, and focus areas
- 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.

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## Content in this bundle

- **Country Report**
  - [Country Report (Markdown version)](/-/media/files/publications/cr/2018/cr1801.pdf.md){rel="alternate" type="text/markdown"}
  - [Country Report (PDF)](/-/media/files/publications/cr/2018/cr1801.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2018/01/05/benin-2017-article-iv-consultation-and-first-review-under-the-extended-credit-facility-45533_