- Growth is projected to stabilize at 6.2% between 2024 and 2026, averaging 3.5% per capita, driven by investment and the expansion of the Glo-Djigb¨¦ Industrial Zone (GDIZ).
- Fiscal consolidation efforts were successful in 2023, thanks to the adoption of innovative tax measures and the containment of spending.
- Without additional adaptation efforts, climate change is projected to cause increasing economic losses, with average annual GDP losses potentially reaching up to 19% by 2050.
- With the agricultural sector accounting for a significant share of the economy, it is critical to adapt agricultural practices, restore and protect forests, and invest in water resources.
- Addressing vulnerabilities in the health system, particularly those exacerbated by climate change, is essential to enhance the resilience of health and education services and protect human capital.
- Strengthening resilience to urban flooding and investing in resilient transport and digital infrastructure are key to keeping people and markets connected.
- Benin should prioritize private sector partnerships and financing for climate investments, as the long-term benefits outweigh the costs.
Construction work on rainwater collectors in the city of Cotonou.
Credit: World Bank
According to the second edition of the Benin Economic Update Report, achieving sustainable and resilient economic growth in the coming decades will depend on efforts to adapt and finance climate investments.