12.10.13

Seychelles’ GDP grows, debt reduction on track

Posted in Business and Economy, Seychelles government, Seychelles' statistics, Tourism industry at 3:32 pm by Robert Klien

According the Seychelles’ finance minister, a recovery in tourism will help the country’s economy grow by a faster-than-expected 3.5% this year and then accelerate to 4% by 2015.

The Seychelles’ tourism sector has been working to fill hotels during the global economic slowdown. The jurisdiction has been turning to Asia in search of new business.

Finance Minister Pierre Laporte told parliament in his 2014 budget reading that this stronger growth will be supported primarily by continued recovery of European tourism markets and expansion of new markets.

He said that the Seychelles’ public debt would fall to 69% of national output. He forecast a primary surplus of 4.4% of gross domestic product in 2014, after a revised 5.2% in 2013. Public debt at 69% of GDP would put the Seychelles on track to reach its long-term debt objectives. The government of Seychelles aims at reducing its debt-to-GDP-ratio to 50% by 2018.

The finance minister announced a 3% cut to business tax, excluding banks, telecommunications firms, insurance companies and breweries, to leave it at 30%.

Laporte said that the minimum wage will rise by 20% for all workers apart from casual labourers.

Maintaining reforms to public enterprises, the government was selling a 27% stake in Seychelles Commercial Bank, its 50% share in Bank of Muscat International Offshore and its shares in the State Assurance Corporation of Seychelles.

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