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The rating agency explains its note by a noticeable improvement in the country's macroeconomic management because of the recent reforms put in place by the government to boost growth.
The report dated 05 In July 2018, the S & P agency explains that the government's reform agenda demonstrates a "pro-active policy approach", whose main focus has been the strengthening of public governance and institutional accountability initiated under the UNAIDS Program. Actions of the Government
Other new laws, the purpose of which is to improve the business climate and the creation of commercial courts, as well as the adoption of a series of decrees and laws to increase transparency , especially in the public markets, will support, if they are "quickly applied", the GDP estimates the agency, according to which, this forecast will induce a revitalization of the confidence of s foreign investors, especially given Benin's strong record of democratic stability.
S & P also highlights improved revenue collection, thanks to increased dynamism in economic activity associated with better performance of the cotton sector, and a series of reforms to improve tax collection.
Standard & Poor's Global also forecasts a growth rate that will remain high, with an average of 6.3% over the period 2018 -2021 and a budget deficit that should be reduced to 4% on average over the period 2018-2021 against the level of 7.6% of GDP recorded in 2015. In perspective, it anticipates a debt ratio of about 50% GDP and a current account deficit which would be reduced to 7% of GDP by 2021.
In addition, the agency considers that Benin's place in the Economic and Monetary Union of West Africa (UEMOA) limits its flexibility in terms of monetary policy, although it still reduces external risks and anchors not without success low inflation.
UB / te / APA
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