Benin: Debt-to-GDP ratio falls to 46.4% in 2023 after rebasing

This decline of 11.7 percentage points is primarily a statistical effect and does not reflect a corresponding decrease in the nominal debt level. The rebasing increases the 2023 GDP from 11,200.7 to 14,020.2 billion CFA francs, representing a 25.2% upward revision, largely due to new data sources and improved coverage of previously underreported activities.

The same adjustment also mechanically reduces the tax pressure ratio by 2.7 percentage points. Additionally, it widens the gap between the reported debt level relative to GDP and the community ceiling of 70% set by the West African Economic and Monetary Union (UEMOA), without altering the actual amounts owed by the state.

For 2024, accounts based on the new methodology estimate real GDP at 15,087.5 billion CFA francs, corresponding to a growth rate of 7.6%. At current prices, GDP is estimated at 15,436 billion CFA francs.

Construction and services sectors more accurately measured

The revision is particularly significant in the secondary sector, where value added has been increased by 56.1%. For construction and public works, the adjustment reaches 111.8%. In the tertiary sector, which has been revised upward by 21.1%, the restaurant and hotel segment shows a statistical increase of 229.5%, while trade rises by 31.6%.

INStaD attributes this new economic picture to the integration of results from the National Agricultural Census, the third General Business Census, the Harmonized Survey on Household Living Conditions, and studies on unregistered foreign trade.

Historical series recalculated since 1999

To maintain comparability over time, the institute has retroactively adjusted accounts for the period from 1999 to 2022. It indicates that work is ongoing to update the framework and series of quarterly national accounts with the new 2023 base.