Economy
GDP (2005 est.): $8.6 billion.
Real GDP growth rate (2005): 3.9%.
Per capita GDP (2005): $1,100.
Inflation rate (2005): 3.2%.
Natural resources: Small offshore oil deposits, unexploited deposits of high quality marble limestone, and timber.
Agricultural: Products--corn, sorghum, cassava, tapioca, yams, beans, rice, cotton, palm oil, cocoa, peanuts, poultry, and livestock. Arable land--13%. Permanent crops 4%, permanent pastures 4%, forests and woodland 31%.
Business and industry: Textiles, cigarettes, food and beverages, construction materials, petroleum.
Trade: Exports--$485 million: cotton, crude oil, palm products, cocoa. Imports--$726 million: foodstuffs, tobacco, petroleum products, energy, and capital goods. Major trade partners--Nigeria, France, China, Italy, Brazil, Libya, Indonesia, U.K., Cote d'Ivoire.

GEOGRAPHY
Benin, a narrow, north-south strip of land in West Africa, lies between the Equator and the Tropic of Cancer. Benin's latitude ranges from 6^o30N to 12^o30N and its longitude from 10E to 3^o40E. Benin is bounded by Togo to the west, Burkina Faso and Niger to the north, Nigeria to the east, and the Bight of Benin to the south. With an area of 112,622 square kilometers, roughly the size of Pennsylvania, Benin extends from the Niger River in the north to the Atlantic Ocean in the south, a distance of 700 kilometers (about 500 mi.). Although the coastline measures 121 kilometers (about 80 mi.), the country measures about 325 kilometers (about 215 mi.) at its widest point. It is one of the smaller countries in West Africa: eight times smaller than Nigeria, its neighbor to the east. It is, however, twice as large as Togo, its neighbor to the west. A relief map of Benin shows that it has little variation in elevation (average elevation 200 meters).

The country can be divided into four main areas from the south to the north. The low-lying, sandy, coastal plain (highest elevation 10 meters) is, at most, 10 kilometers wide. It is marshy and dotted with lakes and lagoons communicating with the ocean. The plateaus of southern Benin (altitude between 20 meters and 200 meters) are split by valleys running north to south along the Couffo, Zou, and Oueme Rivers. An area of flat lands dotted with rocky hills whose altitude seldom reaches 400 meters extends around Nikki and Save. Finally, a range of mountains extends along the northwest border and into Togo; this is the Atacora, with the highest point, Mont Sokbaro, at 658 meters. Two types of landscape predominate in the south. Benin has fields of lying fallow, mangroves, and remnants of large sacred forests. In the rest of the country, the savanna is covered with thorny scrubs and dotted with huge baobab trees. Some forests line the banks of rivers. In the north and the northwest of Benin the Reserve du W du Niger and Pendjari National Park attract tourists eager to see elephants, lions, antelopes, hippos, and monkeys.

Benin's climate is hot and humid. Annual rainfall in the coastal area averages 36 cm. (14 in.), not particularly high for coastal West Africa. Benin has two rainy and two dry seasons. The principal rainy season is from April to late July, with a shorter less intense rainy period from late September to November. The main dry season is from December to April, with a short cooler dry season from late July to early September. Temperatures and humidity are high along the tropical coast. In Cotonou, the average maximum temperature is 31^oC (89^oF); the minimum is 24^oC (75^oF).

Variations in temperature increase when moving north through a savanna and plateau toward the Sahel. A dry wind from the Sahara called the Harmattan blows from December to March. Grass dries up, the vegetation turns reddish brown, and a veil of fine dust hangs over the country, causing the skies to be overcast. It also is the season when farmers burn brush in the fields.

BENIN ECONOMY
Benin's economy is chiefly based on agriculture. Cotton accounts for 40% of GDP and roughly 80% of official export receipts. There also is production of textiles, palm products, and cocoa. Corn, beans, rice, peanuts, cashews, pineapples, cassava, yams, and other various tubers are grown for local subsistence. Benin began producing a modest quantity of offshore oil in October 1982. Production ceased in recent years but exploration of new sites is ongoing. A modest fishing fleet provides fish and shrimp for local subsistence and export to Europe. A number of formerly government-owned commercial activities are now privatized, and the government, consistent with its commitments to the IMF and World Bank, has plans to continue on this path. Smaller businesses are privately owned by Beninese citizens, but some firms are foreign owned, primarily French and Lebanese. The private commercial and agricultural sectors remain the principal contributors to growth.

Economic Development
Since the transition to a democratic government in 1990, Benin has undergone a remarkable economic recovery. A large injection of external investment from both private and public sources has alleviated the economic difficulties of the early 1990s caused by global recession and persistently low commodity prices (although the latter continues to affect the economy). The manufacturing sector is confined to some light industry, which is mainly involved in processing primary products and the production of consumer goods. Benin is dependent on imported electricity, mostly from Ghana, which currently accounts for a significant proportion of the country's imports. Benin has several initiatives to attract foreign capital to build electricity generation facilities in Benin in order to break this dependency. The service sector has grown quickly, stimulated by economic liberalization and fiscal reform. Membership of the CFA Franc Zone offers reasonable currency stability. Benin sells its products mainly to France and, in smaller quantities, to the Netherlands, Korea, Japan, and India. France is Benin's leading source for imports. Benin also is a member of the West African economic community ECOWAS.

In March 2003, the World Bank and International Monetary Fund (IMF) agreed to support a comprehensive debt reduction package for Benin under the enhanced Heavily Indebted Poor Countries (HIPC) Initiative. Debt relief under HIPC amounts to approximately $460 million. Benin received $27.1 million in 2002 and received $32.9 million in 2003. HIPC will reduce Benin's debt-to-export ratio, freeing up considerable resources for education, health, and other anti-poverty programs.

Despite its growth, the economy of Benin still remains underdeveloped and dependent on subsistence agriculture, cotton production, and regional trade. Inflation has subsided over the past several years. Growth in real output averaged a sound 5% from 1996 to 2003, but a rapid population rise offset much of this growth on a per capita basis. Real economic growth for 2004 was estimated at 5%. Commercial and transport activities, which make up a large part of GDP, are vulnerable to developments in Nigeria, including fuel shortages. Recent heightened enforcement of Nigerian customs regulations, an unfavorable exchange rate with the Naira and difficulties at Cotonou's port have contributed to the economic downturn.