Benin: Sixth Reviews Under the Extended Fund Facility and the Extended Credit Facility Arrangements, and Third Review Under the Resilience and Sustainability Facility Arrangement-Press Release; Staff Report; and Statement by the Executive Director for

Benin’s strong institutional foundation and economic reform drive, combined with sound macroeconomic management, has generated tangible dividends. Economic activity accelerated over the past five years—and markedly in 2024—with promising signs of economic transformation and less volatile income growth. Fiscal consolidation in 2024 supported Benin’s convergence to the WAEMU deficit norm of 3 percent of GDP one year in advance—one of only two countries to do so in the WAEMU. The 2025 budget will therefore target a minor adjustment to remain in compliance with the WAEMU deficit norm. The strong reform drive has sustained development partners’ engagement and reaffirmed international investors’ confidence: budget support continues to consistently exceed expectations, while access to international markets is marked by successful issuances. Going forward, Benin will need to manage sociopolitical and security challenges, while maintaining the reform and tax collection momentum and strengthening inclusive policies to entrench the ongoing economic transformation.