Macroeconomic Resilience in Benin and Togo

This policy brief provides a comparative analysis of macroeconomic resilience in Benin and Togo from 2000 to 2020, examining how each country responded to endogenous (national) and exogenous (regional/global) shocks. The analysis highlights differences in fiscal and monetary policy responses, noting that Benin's economy has been more volatile due to global integration, while Togo's has been more shielded by phosphate exports but hampered by governance crises.

• Benin's economy exhibited greater volatility in GDP growth compared to Togo's, largely because Benin is more integrated into the regional and global economy. In contrast, Togo's economic performance was more stable, aided by its primary export of phosphates, which enabled the use of counter-cyclical policies to mitigate shocks.
• Benin demonstrated responsible fiscal policy by implementing counter-cyclical government spending during periods of negative GDP growth, with spending increasing by 4.25% during such times. However, the government's debt stock has risen steadily since 2007, reaching 52% of GDP in 2023.
• Togo's macroeconomic resilience has been hindered by frequent governance crises linked to political institutions and elections (specifically in 2000, 2004, 2010, 2012, and 2020). Government spending in Togo tended to be procyclical during these national crises, meaning spending decreased during the crises.
• Both countries face significant poverty and lack export diversification. As of 2018, 38% of Benin's population and 45% of Togo's population lived in poverty. Benin's exports are heavily reliant on cotton (approximately 65%), while Togo's are dominated by minerals (approximately 50%).
• The document recommends specific policy actions for both nations: Benin should reduce its debt-to-GDP ratio, expand its tax base by formalizing firms, and improve trade relations with Nigeria. Togo is advised to implement governance reforms to create inclusive institutions and maintain a low money supply growth rate to control inflation, which reached 7.6% in 2022.

APA

South African Institute of International Affairs (2024). Macroeconomic Resilience in Benin and Togo. https://saiia.org.za/research/macroeconomic-resilience-in-benin-and-togo/

Chicago

South African Institute of International Affairs. Macroeconomic Resilience in Benin and Togo. 2024. https://saiia.org.za/research/macroeconomic-resilience-in-benin-and-togo/.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=Macroeconomic Resilience in Benin and Togo |date=8 February 2024 |url=https://saiia.org.za/research/macroeconomic-resilience-in-benin-and-togo/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairs2024macroeconomic, author = {{South African Institute of International Affairs}}, title = {{Macroeconomic Resilience in Benin and Togo}}, institution = {South African Institute of International Affairs}, year = {2024}, month = feb, url = {https://saiia.org.za/research/macroeconomic-resilience-in-benin-and-togo/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }