12.07.06

Seychellois Budget 2007 Framed. Part 1

Posted in Business and Economy, International Organisations, Seychelles offshore jurisdiction at 3:19 pm by Robert Klien

The national budget 2007 framed for the future provides new opportunities of steady growth and success of the Seychelles and its people.

Minister for Finance, Danny Faure, delivered his Budget Address to the National Assembly on December 5, 2006. Not only members of the National Assembly, but also an important delegation representing the private sector was listening listen to his Budget Address.

The Minister for Finance considers that the economy of the Seychelles is doing fine and it is on the right track, which, by the way, has been endorsed by the visiting the International Monetary Fund and African Development Bank delegations.

The Minister is cautious and realistic enough to realize that there is more to fine-tune as the country continues to improve internal conditions of doing business as well as of harnessing the new role of the private sector. So, submitting his 2007 Budget was made with a realistic approach to realistic issues, understanding the government’s responsibility for the well-being of the country and its people.

In accordance with the Minister, 2006 is experiencing a continuation of the economic recovery for Seychelles which started in 2005, and this is a result of government policies implemented in the past three years.

Real GDP growth for the year 2006 is forecast at 4.5%, from an expansion of 1.5% in 2005. Danny Faure considers that this growth is underpinned by a general expansion in aggregate demand, mainly coming from strong increases in investments and private consumption. This reflected households, and has been available because of a wider variety of commodities on the market and the recent increase in salaries.

Mr. Faure also discussed the improvement of net external position of the banking sector, which improved by a remarkable R212 million from December 2005 to September 2006.

Following the rapid changes in the economic landscape given the implementation of reforms, the government and the Central Bank are monitoring the situation in order to make sure that the transition to a more liberalized economic environment is smooth.

According to Mr. Faure, the level of foreign direct investment (FDI) inflows into Seychelles in 2006 is projected at USD 114 million, and indicators point to further growth in at least the next 3 years. These inflows are mainly directed to the tourism sector, more particularly the high yield establishments, involving also internationally known companies.

The Minister for Finance announced that services sector remained the most important for the economy of the Seychelles.

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