09.30.17

Seychelles’ situation getting better, IMF says

Posted in Business and Economy, International Organisations, Seychelles government at 4:31 pm by Robert Klien

According to the International Monetary Fund (IMF), Seychelles has made “remarkable progress” on strengthening its economy and finances.

Since the 2008 financial crisis, the jurisdiction has been working with the IMF to improve its economy and reform its fiscal policies. According to the IMF,  these actions have driven “strong economic growth as well as noticeable improvement in fiscal and external position as well as a reduction in debt.”

The IMF said that Seychelles’ economic performance has been robust in 2017, adding that the primary fiscal surplus for the year is expected to reach 2.5% of GDP in line with the authorities’ target. So, it noted that “Growth outlook for 2018 remains positive, buoyed by the tourism sector”.

However, the IMF warned that “Seychelles still faces vulnerabilities and pressures, as a small island economy in a challenging global economic environment.” In order to manage these issues, the jurisdiction has entered into a 3-year arrangement with the IMF to receive intensive support on developing and implementing pro-growth economic policies.

The IMF discussed a number of potential measures with the authorities of Seychelles aimed to ensure continued fiscal discipline and progress towards the debt reduction goals.