12.03.06

Seychelles economy improvement

Posted in Business and Economy, International Organisations, Seychelles offshore jurisdiction at 2:20 am by Robert Klien

After year 2005 that was quite hard for the Seychelles, the country has been experiencing an essential economic growth of 4.5% this year. The economic recovery can be explained not only by a successfully growing tourism industry, but also by reforms of the previous years.

The economic outlook of the situation in the Seychelles was presented by the International Monetary Fund (IMF) mission after its 2-week visit (November 8-21, 2006)as concluding statements.

It is worth noting that the Seychelles’ people were delighted with and proud of the Statement by IMF Staff at the Conclusion of the 2006 Article IV Consultation Discussions with Seychelles. The IMF said that “the economic situation is improving, with strong tourism arrivals and construction activity driving the recovery”.

But, as it has been mentioned above, economic reforms are by no means of less significance. “Following the July 2006 presidential election, the authorities are implementing a package of policy reforms aimed at addressing Seychelles’ key macroeconomic imbalances.” These policies meant by the IMF are mainly new currency exchange guidelines, repayment of external debt and banking reforms. However, the IMF considers the recent reforms not enough to secure long-term growth. Therefore, the International Monetary Fund suggests implementing further structural reforms regarding employment, infrastructure, further privatisation, and price controls.”

Also, the IMF considers that record inflows of foreign direct investment (FDI) in the country indicate renewed confidence in the country’s economy.

So, currently, the Seychelles has something to boast of – it has one of the strongest economies in Africa; but its economy is still continuing to improve, to enhance its competitiveness, to maintain its growth.

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