Country Report Benin April 2008

Economic policy: IMF relations are good amid positive economic outlook

Benin's relations with donors and the international financial institutions have remained good. In mid-March the IMF's fourth review of Benin's poverty reduction and growth facility (PRGF) reported real GDP growth of 4.6% in 2007, with a prediction of 5.3% growth in 2008 based on the strength of the cotton and other agricultural sectors and the performance of the port of Cotonou. In a speech to the National Assembly before the New Year the president, Boni Yayi, was more bullish, predicting real GDP growth of 7% in 2008. Inflation, which was well controlled throughout 2007 at 1.3%, began to rise into 2008, but this is still well below the desired upper limit of 3% of the Banque centrale des Etats de l'Afrique de l'ouest (BCEAO, the regional central bank).

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