Benin’s Economy Sees Green Light in Q1 2024

Benin’s economic indicators are looking positive in the first quarter of 2024, with a growth rate of 6.3%.

Falco Vignon

National Economic Growth on the Rise

Benin’s economic growth is strengthening, with a growth rate of 6.3% in the first quarter of 2024, following 6.4% in the previous quarter and 6.2% in the same period last year. This growth is felt across all sectors, with the primary sector growing at 5.4%, the secondary sector at 6.9%, and the tertiary sector at 6.3%. The tertiary sector, which accounts for more than 53% of the country’s GDP, is the main driver of Benin’s economic growth.

The tertiary sector’s contribution to growth was 3.3 percentage points, and it represented more than half (53.3%) of GDP in the first quarter of 2024. This sector includes trade, administration, transport, real estate, finance, business services, personal services, education, health, and social action. The good performance of the tertiary sector is a result of the development of economic activities in the main sectors.

Primary and Secondary Sectors’ Contributions

The primary sector’s added value increased by 5.4% in the first quarter of 2024, after 5.3% in the fourth quarter of 2023 and 4.8% a year earlier. The primary sector’s contribution to real GDP growth was 1.0 percentage points in the first quarter of 2024, and its share in GDP is estimated to be 18.1% during the period.

The secondary sector recorded economic growth of 6.9% in the first quarter of 2024, after 8.7% in the previous quarter and 6.6% in the same period in 2023. Its contribution to real GDP growth during the period is +1.2 points, and its share in GDP is 18.1%. The secondary sector includes activities such as manufacturing industries, construction, agri-food industry, aeronautics, automotive, astronautics, buildings and public works, electrotechnical construction, railway construction, and mechanical construction.

Global Economic Outlook

The global economy is expected to grow at a rate of 3.2% in 2024, according to the International Monetary Fund. In Sub-Saharan Africa, economic growth is expected to stand at 3.8% in 2024, after 3.4% in the previous year. In Nigeria, the growth rate is expected to be 3.3% in 2024, after 2.9% in 2023.