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Economy of Benin

Benin is considered to be a developing nation. The developmental stage of a nation is determined by a number of factors including, but not limited to, economic prosperity, life expectancy, income equality, and quality of life. As a developing nation, Benin may not be able to offer consistent social services to its citizens. These social services may include things like public education, reliable healthcare, and law enforcement. Citizens of developing nations may have lower life expectancies than citizens of developed nations. Each year, Benin exports around $1.11 billion and imports roughly $1.84 billion. 2.5% of population in the country are unemployed. The total number of unemployed people in Benin is 287,142. In Benin, 36% of the population lives below the poverty line. The percentage of citizens living below the poverty line in Benin is fairly high, but is not reason for complete concern with regard to investments. Potential financial backers should look at other economic markers, including GDP, urbanization rate, and strength of currency, before making any decisions regarding investments. Government expenditure on education is 3.5% of GDP. The Gini Index of the country is 36.5. Benin is experiencing good equality. The majority of citizens in Benin fall within a narrow range of income, although some cases may show significant differences. Benin has a Human Development Index (HDI) of 0.476. Benin has a lower medium HDI score. This indicates that the majority of citizens will struggle to attain a desirable life due to flawed economic and social systems. The Global Peace Index (GPI) for Benin is 1.958. Due to strong law enforcement presence and high social responsibility, Benin is very safe by international standards. The strength of legal rights index for Benin is 6. Overall, it is considered to be rather adequate - bancrupcy and collateral laws are able to protect the rights of borrowers and lenders at least decently; credit information is msotly sufficient and generally available.

Currency

The currency of Benin is West African CFA Franc. The plural form of the word West African CFA Franc is CFA francs. The symbol used for this currency is Fr, and it is abbreviated as XOF. The West African CFA Franc is divided into Centime; there are 100 in one CFA Franc.

Credit rating

According to the S&P credit-rating agency, Benin has a credit rating score of B, and the prospects of this rating are stable. According to the Fitch credit-rating agency, Benin has a credit rating score of B, and the prospects of this rating are stable.

Central bank

In Benin, the institution that manages the state's currency, money supply, and interest rates is called Central Bank of West African States. Locally, the central bank of Benin is called Banque Centrale des États de l'Afrique de l'Ouest, BCEAO. The average deposit interest rate offered by local banks in Benin is 3.5%.

Public debt

Benin has a government debt of 30% of the country's Gross Domestic Product (GDP), as assessed in 2012.

Tax information

The corporate tax in Benin is set at 35%. Personal income tax ranges from 10% to 35%, depending on your specific situation and income level. VAT in Benin is 18%.

Finances

The total Gross Domestic Product (GDP) assessed as Purchasing Power Parity (PPP) in Benin is $19862 billion. The Gross Domestic Product (GDP) assessed as Purchasing Power Parity (PPP) per capita in Benin was last recorded at $2 million. PPP in Benin is considered to be below average when compared to other countries. Below average PPP indicates that citizens in this country find it difficult to purchase local goods. Local goods can include food, shelter, clothing, health care, personal care, essential furnishings, transportation and communication, laundry, and various types of insurance. Countries with below average PPP are dangerous locations for investments. The total Gross Domestic Product (GDP) in Benin is 8,307 billion. Based on this statistic, Benin is considered to have a medium economy. Countries with medium economies support an average number of industries and opportunities for investment. It should not be too difficult to find worthwhile investment opportunities in medium economies. The Gross Domestic Product (GDP) per capita in Benin was last recorded at $1 million. The average citizen in Benin has very low wealth. Countries with very low wealth per capita often have lower life expectancies and dramatically lower quality of living among citizens. It can be very difficult to find highly skilled workers in countries with very low wealth, as it is difficult for citizens to obtain the requisite education needed for specialized industries. However, labor can be found for very low rates when compared with countries with higher wealth per capita. GDP Annual Growth Rate in Benin averaged 5.5% in 2014. According to this percentage, Benin is currently experiencing significant growth. Countries that are experiencing significant growth offer the best chance for a substantial return on investment, as GDP growth rate is the most important indicator of economic health. As GDP grows, business, jobs, and personal income grow as well. To read more about financial information click on finances of Benin.

Industry

Major industries in the country are textiles, food processing, construction materials, cement. The total labor force of Benin is 4,542,250 people, wherein 2.5% of population in the country are unemployed. The total number of unemployed people in Benin is 287,142. The Industrial Production growth rate of Benin is 3%.To read more about industrial information within Benin click on industry of Benin.

Agriculture

There are 26029 km2 of arable land in Benin, and it comprises 23% of the country's total territory. There are 28651 km2 of cultivated land in Benin. The country's major agricultural crops and products are cotton, corn, cassava, yams, beans, palm oil, peanuts, cashews, livestock.To read more about agriculture click on agriculture of Benin.