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Rating Report

Benin

Thu 13 Mar, 2025 - 5:03 PM ET

Benin's rating reflects its robust GDP growth, expected to exceed 6.5% through 2026, driven by increases in agriculture, construction, and agroindustry. The country has shown resilience to external shocks and is making progress in economic diversification, particularly through the expansion of the Port of Cotonou and the Glo-Djigbé industrial zone. Fiscal consolidation is underway, with the fiscal deficit projected to stabilize at 2.9% of GDP by 2026. Public debt is expected to decline to 51% of GDP by 2026, supported by a favorable debt structure with a high proportion of concessional debt. The current account deficit is forecast to narrow, and external financing needs are expected to be adequately covered. Political risks are considered moderate, and the government is investing in security and social services. Benin's ESG scores highlight governance and political stability as key rating drivers.

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