Bénin rebases national accounts, GDP 2023 revised up by 25.2%
The National Institute of Statistics and Demography (INStaD) has completed the rebasing of Bénin‘s national accounts, adopting 2023 as the new base year for economic measurements. This replaces the previous 2015 base, providing a more accurate reflection of the country’s economic landscape.
The revised GDP for 2023 now stands at 14,020.2 billion FCFA, marking a significant 25.2% increase compared to the previous estimate. This adjustment does not indicate a sudden surge in wealth creation but rather an enhanced statistical coverage and improved measurement of economic activities across the nation.
Why the change in the base year?
The decision to adopt 2023 as the new base year aligns with the 2008 United Nations System of National Accounts recommendations, which advocate for periodic updates to improve the accuracy of economic estimates. While the standard practice is to revise the base year every five years, this schedule was disrupted by the global economic shocks between 2019 and 2022.
The selection of 2023 was strategic due to its relative economic stability for Bénin. Additionally, the period from 2019 to 2023 saw significant statistical operations that provided a clearer picture of the nation’s evolving economic structure.
A closer look at the GDP revision
Under the new base year, the previously estimated GDP for 2023 stood at 11,200.7 billion FCFA. The revised figure of 14,020.2 billion FCFA represents a substantial upward adjustment. This increase stems from a more comprehensive statistical approach and better coverage of economic activities.
The revision highlights growth across all sectors, with the secondary sector seeing a notable 56.1% rise. On the demand side, the most significant changes are observed in the gross fixed capital formation, which has been adjusted upwards by 36.6%. This adjustment reflects a more accurate accounting of investments in infrastructure, construction, and productive equipment, including those in economic zones.
Collaboration and future steps
The rebasing process was conducted with support from key technical and financial partners, including the World Bank, AFRISTAT, the International Monetary Fund (IMF), GIZ, the African Development Bank, STATFRIC, the Economic Community of West African States (ECOWAS), and the West African Economic and Monetary Union (WAEMU). Peer reviews were also conducted in collaboration with the national statistics institutes of Burkina Faso and Mali.
Looking ahead, INStaD is set to extend the rebasing process by retroactively adjusting the national accounts from 1999 to 2022. This will provide Bénin with a complete and updated series of national accounts based on the 2023 benchmark, ensuring more reliable economic planning and policy-making.