The regime that came to power in a 1972 coup attempted from 1975 to restructure the economy more or less along socialist principles and to disengage from dependence on France. Most sectors of the economy were nationalized or otherwise turned over to government control, and economic relations were accomplished with the Soviet Union and other socialist countries, as well as with Benin's neighbours. By the early 1980s it was clear that though the economy was restructured and, at least on paper, more efficient and diversified and France's contribution to Benin's economy diminished corruption persisted and that the overall economic situation had not improved.

Benin, one of the poorest countries in Africa, has an economy dependent, as in colonial times, on agriculture. Many private enterprises were nationalized in the 1970s, but worsening economic conditions forced the government to sell most of them in the late 1980s and early 1990s. The national budget in 1993 anticipated $272 million in revenues and $375 million in spending. In 1999 the gross domestic product (GDP), which measures the total value of goods and services produced in the nation, was $2.4 billion, or $390 a person. Benin is a member of the Economic Community of West African States, an organization designed to promote economic cooperation and development.

The economy of Benin remains underdeveloped and dependent on subsistence agriculture, cotton production, and regional trade. Growth in real output averaged a sound 5% in 1996-99, but a rapid population rise offset much of this growth. Inflation has subsided over the past several years. Commercial and transport activities, which make up a large part of GDP, are vulnerable to developments in Nigeria, particularly fuel shortages. The Paris Club and bilateral creditors have eased the external debt situation in recent years. While high fuel prices constrained growth in 2000, increased cotton production - enabled by a major restructuring program - and an development of the Cotonou port, may lead to increased growth in 2001.