An International Monetary Fund team led by Sonali Das recently visited Cotonou for annual consultations under Article IV from October 27 to November 6, 2026. The mission chief expressed satisfaction with Benin's economic performance, citing sustained growth driven by increased exports of processed products and a thriving information technology sector. According to the IMF, Benin's economy has shown resilience in recent years.
Benin's economic growth reached 8.1% in 2025, its highest level in nearly two decades. This growth has been supported by a favorable budgetary situation, with the country's deficit reduced to below the 3% of GDP threshold set by the West African Economic and Monetary Union (UEMOA) as early as 2024. In February 2026, the IMF's Executive Board completed its review of three financing programs launched in 2022.
The IMF forecasts Benin's growth to slow down to 7.8% in 2026 and around 7% in 2027, due to the gradual impact of higher transportation and import costs. Inflation is expected to remain under control and return to the 2% target by 2027. Sonali Das noted that medium-term prospects remain favorable, driven by agricultural transformation and ongoing reforms.
The IMF projects a budget deficit of 2.3% of GDP in 2026 and 2.9% in 2027, still below the community threshold. To maintain economic stability, the IMF recommends that Benin maintain a prudent budget policy while protecting priority social spending. The Fund also emphasizes the need to broaden the tax base and reduce exemptions.
Sonali Das praised Benin's authorities for strengthening public debt transparency, including the publication of revised data conforming to international standards. However, she stressed the importance of improving supervision of public enterprises and enhancing monitoring of budgetary risks and public markets. The IMF mission met with several government officials, including Minister of Economy and Finance Aristide Medenou.
The IMF mission also engaged with representatives from civil society and the private sector during its visit. Sonali Das expressed gratitude to Benin's authorities for their warm welcome and for engaging in an open and constructive dialogue. The IMF's recommendations aim to support Benin's economic development while maintaining macroeconomic stability.
The conclusion of the IMF's 2026 mission marks a positive development for Benin's economy, which has demonstrated resilience in recent years. With continued prudent budget management and structural reforms, Benin is well-positioned to sustain its economic growth and achieve its development objectives.
Key points
- IMF forecasts Benin's growth to slow down to 7.8% in 2026 and around 7% in 2027.
- The IMF recommends maintaining a prudent budget policy while protecting priority social spending.
- Benin's economy grew by 8.1% in 2025, its highest level in nearly two decades.
