- In 2024, Benin's economic growth reached 7.5 %, the highest since 1990, driven by the services and industry sectors.
- Despite growing uncertainty surrounding global trade and unstable trade relations with neighboring countries, economic growth is expected to average 7.1% over the period 2025-2027. Strong economic activity combined with moderate inflation should support a decline in poverty to 22.3% in 2027.
- Revenue mobilization in Benin has been steadily increasing since 2016, driven by strong tax collection performances. Despite progress, tax revenues in Benin remain below those of peer countries and progress towards improving direct tax collection has been modest. High informality and tax exemptions reduce the productivity and efficiency of taxes.
- In Benin, direct taxes and transfers are key to reducing inequality, as the fiscal system has reduced inequality by 3.0 Gini points, mainly through in-kind transfers. Strengthening social safety nets, implementing more progressive taxation, and increasing more targeted social spending could lift more than 100,000 people out of poverty each year while continuing to mobilize more resources.
World Bank. 2025