this increase.
Inflation has subsided over the past several years. In order to
raise growth still further, Benin plans to attract more foreign
investment, place more emphasis on tourism, facilitate the
development of new food processing systems and agricultural
products, and encourage new information and communication
technology. Many of these proposals were included in Benin's $307
million Millennium Challenge Account grant signed in February 2006.
The 2001 privatization policy continues in telecommunications,
water, electricity, and agriculture in spite of government
reluctance. The Paris Club and bilateral creditors have eased the
external debt situation, with Benin benefiting from a G8 debt
reduction announced in July 2005, while pressing for more rapid
structural reforms. Benin continues to be hurt by Nigerian trade
protection that bans imports of a growing list of products from
Benin and elsewhere, which has resulted in increased smuggling and
criminality in the border region.

GDP (purchasing power parity):
$8.931 billion (2006 est.)

GDP (official exchange rate):
$4.622 billion (2006 est.)

GDP - real growth rate:
4% (2006 est.)

GDP - per capita (PPP):
$1,100 (2006 est.)

GDP - composition by sector:
agriculture: 32.8%
industry: 13.7%
services: 53.5% (2006 est.)

Labor force:
3.211 million (1996)

Unemployment rate:
NA%

Population below poverty line:
33% (2001 est.)

Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices):
3% (2006 est.)

Investment (gross fixed):
19.1% of GDP (2006 est.)

Budget:
revenues: $836.8 million
expenditures: $1.064 billion; including capital expenditures of $NA
(2006 est.)

Agriculture - products:
cotton, corn, cassava (tapioca), yams, beans, palm oil, peanuts;
livestock

Industries:
textiles, food processing, construction materials, cement

Industrial production growth rate:
8.3% (2001 est.)

Electricity - production:
82 million kWh (2004)

Electricity - production by source:
fossil fuel: 14.2%
hydro: 85.8%
nuclear: 0%
other: 0% (2001)

Electricity - consumption:
576.3 million kWh (2004)

Electricity - exports:
0 kWh (2004)

Electricity - imports:
500 million kWh (2004)

Oil - production:
0 bbl/day (2004)

Oil - consumption:
14,000 bbl/day (2004 est.)

Oil - exports: