09.30.13

Minister for Finance, Trade and Investment overviews Economy in 2013

Posted in Business and Economy, Seychelles government, Seychelles' statistics at 3:21 pm by Robert Klien

In a Budget Speech 2014 made by the Minister for Finance, Trade and Investment, Pierre Laporte, an overview of the economy in 2013 was presented.

Laporte said that the global economy recorded mixed outcomes in 2013. Global growth is forecasted at 2.9%.

He noted that macroeconomic fundamentals remain strong in Seychelles. As has been predicted, growth in the domestic economy accelerated in 2014. Moreover, at 3.5%, real GDP growth exceeded the 3% target that was set for 2013. Unemployment remained below 2%.

The Minister for Finance, Trade and Investment mentioned that growth in the real economy continued to be driven by the tourism sector. For the 1st 3 quarters of 2013, visitor arrivals rose by 13% and income was up by about 11%. It was important that strong increases were observed in new markets, namely Russia, the UAE, and Asia.

Prudent monetary policy by the Central Bank of Seychelles (CBS) helped reduce inflation, which is forecasted to average 4.4% for 2013 compared to 7.1% in 2012. Favourable oil price movements on the international market resulted in stable demand for foreign currency, which helped maintain stability in the domestic foreign exchange market. CBS’ gross external reserves are targeted at USD 400 million or about 4 months of imports by end-December 2013.

Average interest rates in Seychelles declined in 2013. The average lending rate of commercial banks fell from 13.39% at end-2012 to 11.68% at end-October 2013. Against this backdrop, credit to the private sector grew by 6.8% in July 2013 compared to 4.5% for the same period in 2012.