According to the American rating agency, the country’s economic outlook has been upgraded from “stable” to “positive.” In a complex regional and international context, S&P evokes a “robust” Beninese economy, and minimizes the fallout from sanctions on Niger.
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It is above all economic growth which reassures the American rating agency. According to projections, Benin’s GDP must continue to increase by more than 6% each year until 2026. At the same time, the public deficit must fall, thanks to the ” fiscal prudence ” of the government.
All in a difficult regional context, particularly since the coup d’état in Niger in July. Benin’s neighbor and important trading partner has since been under ECOWAS sanction. Sanctions which only have little effect » on Beninese growth according to S&P. At issue: goods continue to circulate via Burkina Faso and the Benin-Niger pipeline project which “ continues » according to the rating agency.
S&P also mentions the risk of military intervention by ECOWAS “ who walks away “. But warn: if the situation were to deteriorate, Benin’s rating would be lowered.
The Beninese government welcomed the decision in a press release. And explains being “ the only country in Africa with a positive outlook with S&P “.