Benin economy to slow, fiscal position worsens: IMF

WASHINGTON (Reuters) - Declining cotton exports will slow Benin's economic growth to 2.5 percent this year while low revenues are worsening the country's fiscal position, the International Monetary Fund said on Monday.

In a statement following an IMF mission's visit to the West African country between September 14-28, the fund said discussions on an economic program that could be supported would continue in the next few months.

Benin's economy expanded 5 percent in 2008.

"The external current account deficit, excluding grants, is expected to widen to about 13 percent of GDP, reflecting the decline in cotton exports, which more than offset the improvement in the terms of trade," the IMF said.

In light of the deterioration in the country's fiscal position, the fund said there was a need to limit bonuses and other fringe benefits to civil servants while strengthening controls on public expenditures.

"The mission would like to reiterate its readiness to strengthen the partnership between the authorities and the IMF in order to help Benin address the challenges confronting its economy," the IMF said.