08.21.09
Seychelles’ Economy doing better than IMF predicted
The economy of Seychelles is doing better than it was predicted by the International Monetary Fund (IMF), so GDP for 2009 should fall by about 8% instead of the 11% forecast.
In December 2008, the International Monetary Fund announced that the Seychelles’ heavily-indebted economy will contract 0.5% in 2009 while inflation will rise until the 2nd quarter of 2009. The IMF said that
On August 14, 2009, Paul Mathieu, the head of an IMF economic performance evaluation team, spoke at a press conference attended by Finance Minister Danny Faure, principal secretary in the ministry Ahmed Afif and Central Bank governor Pierre Laporte.
He said that the revised forecast is based on a better performance by the tourism industry, and now visitor arrivals were expected to drop by only 15% (not by 25% predicted earlier). Also, he noted that fishing is doing better because it was threatened by piracy earlier but the problem is being addressed now.
According to Mathieu, Seychelles is making a strong progress in its economic reform programme. He announced that the International Monetary Fund will now disburse USD 1.4 million as part of the USD 24 million arrangement approved when the reforms were launched in Seychelles in November. It should be noted that USD 12.3 million has already been received.
He said, “The economy is gaining strength and the decline in the real GDP that we forecast earlier at 11% will now be somewhat less than it appeared in May”. “We do not have a final figure yet, but the decline will probably be between 8% and 9%”.
The 3rd IMF review mission, based on end-September performance, is expected in October 2009. The mission will coincide with talks on a medium-term structural reform programme to be supported by a 3-year arrangement under the Extended Fund Facility.