Economic growth in Benin is expected to stabilize at 6.2% between 2024 and 2026, with an average per capita growth of 3.5%. This projection is largely driven by investment and the expansion of the Glo-Djigbé Industrial Zone (GDIZ).
In 2023, fiscal consolidation efforts proved successful due to the adoption of innovative tax measures and a focus on containing spending. However, climate change remains a significant concern for the country's economy. Without additional adaptation efforts, it is projected that climate change could cause increasing economic losses, with potential average annual GDP losses reaching up to 19% by 2050.
The agricultural sector plays a crucial role in Benin's economy. Therefore, adapting agricultural practices, restoring and protecting forests, and investing in water resources are essential steps towards sustainable economic growth.
Similarly, addressing vulnerabilities in the health system - particularly those exacerbated by climate change - is critical to enhance the resilience of health and education services and protect human capital.
To keep people and markets connected, strengthening resilience to urban flooding and investing in resilient transport and digital infrastructure are key areas of focus.
Lastly, prioritizing private sector partnerships and financing for climate investments is recommended for Benin as the long-term benefits are likely to outweigh the costs.