Benin: Selected Issues
IMF Staff Country Reports, January 5, 2018
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- Benin: Selected Issues
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Bibliographic details
- Published: January 5, 2018
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484336540.002
Summary and main findings
- This Selected Issues paper analyzes the growth, structural transformation, and export diversification in Benin.
- Although Benin has delivered high economic growth over recent years, it faces critical challenges regarding export diversification and domestic production.
- Benin’s competitiveness is impaired by structural bottlenecks.
- Low and stagnant productivity in the agriculture sector is perhaps a primary cause of the limited poverty reduction in rural areas.
Challenges identified
- Export diversification is limited.
- Domestic production constraints hinder expansion into new lines of economic activity.
- Structural bottlenecks reduce overall competitiveness.
- Electricity shortages and weaknesses in the business climate constrain private sector development.
- Low and stagnant agricultural productivity contributes to constrained rural poverty reduction.
- Human capital deficiencies limit potential gains from structural transformation.
Policy recommendations and areas for reform
- Policies to promote structural transformation and diversification should focus on addressing weaknesses that hinder entry into new lines of economic activity.
- Further progress on strengthening the business climate could provide significant benefits.
- Addressing electricity shortages is recommended to support competitiveness and diversification.
- Increasing human capital is recommended to enable structural transformation and productivity gains.
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- Country Report