Benin: Seventh Reviews Under the Extended Fund Facility and the Extended Credit Facility Arrangements and Fourth Review Under the Resilience and Sustainability Facility Arrangement-Press Release; Staff Report; and Statement by the Executive Director for Benin

Benin’s macroeconomic performance and commitment to reform have been robust. Economic momentum is accelerating, with growth projected at 7.5 percent in 2025. After a significant fiscal consolidation effort, the overall fiscal deficit fell to 3.1 percent of GDP in 2024 and is estimated at 2.9 percent of GDP in 2025, just below the WAEMU deficit ceiling of 3 percent of GDP. The approved budget targets a similar deficit in 2026. The strong reform drive has sustained development partners’ engagement and boosted international investors’ confidence, while access to international markets has been marked by successful issuances. Going forward, Benin will need to manage socio-political and security challenges, while maintaining the reform and tax collection momentum and strengthening inclusive policies to entrench the ongoing economic transformation.