08.02.07
Seychelles President expects growth in 2007
President James Michel has said that the Seychelles’ economy is predicted to grow by 7.5% in 2007 because investment in the jurisdiction’s goes on increasing.
When reflecting on his 1st year in office since being elected in 2006, Michel said that things are going well and the country has been able to progress. He informed that the level of growth has come up to 5.3%. According to teh President, such growth shows an increase of 1.2% from the previous year, which definitely is a considerable progress since restarting the Seychellois economy. Based on the available data the growth of 7.5% is expected this year.
Michel said that during the 1st 6 months of 2007 there has been an increase of 3% in the level of foreign exchange coming into the Seychelles as well as the boom in construction could be observed. He stated that “what is happening the demand for foreign exchange has increased so if the inflows have increased it is not that visible due to the high demand†but the above-mentioned will be resolved when enough foreign exchange is brought in.
As to concrete amounts, around USD 100 million in foreign exchange has flowed into the country in 2007, and its reserves at the end of June were USD 110 million, which is a 16% increase as compaed with 2006. The President predicted that reserves will go on rising as the economy of the Seychelles grows.
According to Michel, the government has attempted to promote investment in the onshore business environment by means of introducing a new law that exempts payment of business tax on the first USD 41 000 of profits for all companies (effective from January 1, 2007).