Benin is a country located in West Africa. It is bounded by Togo to the west, by Nigeria to the east, and by Burkina Faso and Niger to the north. Most of its population lives in the Gulf of Benin. The capital of Benin is Porto Novo, but its government is in Cotonou, the largest city in the country. Benin covers an area of approximately 112,622 square kilometers, with a population of 9.05 million people.
The Beninese economy is characterized by the importance of the primary sector, especially agricultural activity. Agriculture represents more than 33% of the national GDP. Food production is intended for domestic consumption and export, especially cotton.
The informal sector in Benin is very important since it is estimated that it employs around 50% of the workforce and is concentrated in the agricultural and service sectors.
Benin’s trade balance is in deficit. It has several commercial partners, among which the economic relations with Nigeria stand out. Some references assume that the Beninese economy is more sensitive to developments in the Nigerian economy than to fluctuations in cotton prices on the international market.