08.16.16

Seychelles maintains credit rating, which signals economic stability

Posted in International Organisations, Seychelles government, Seychelles' statistics at 10:20 am by Robert Klien

According to the Seychelles Finance, Trade and Blue Economy Minister, Jean Paul Adam, a credit rating of BB- for the 2nd straight year for the Seychelles’ government signals the jurisdiction’s economic stability and increased resilience amid global economic uncertainty.

Fitch Ratings gave Seychelles the same grade in 2015.

The finance minister said that the rating and the archipelago’s ‘stable outlook’ affirmed by Fitch is a show of confidence in Seychelles economy. He said: “Quite a number of countries including both highly developed countries and developing African countries have been downgraded due to global uncertainties, so for us this shows that we are on the right track”.

“Fitch Ratings has affirmed Seychelles’ Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) at ‘BB-‘ with a Stable Outlook. The issue rating on Seychelles’ unsecured foreign-currency bond has also been affirmed at ‘BB-‘. The Short-Term Foreign- and Local-Currency IDRs have been affirmed at ‘B’ and the Country Ceiling at ‘BB’”.

In 2008, Seychelles had a total public debt that stood at 151% of GDP, with the external public debt representing almost 95% of GDP (USD 808 million). A default in debt payments prompted Seychelles to embark on a 5-year IMF-backed economic reform programme in October 2008, ending in October 2013. This has been followed by a new generation of reforms approved by the IMF in June 2014.

In its latest assessment, Fitch noted that the jurisdiction’s public debt remains on a downward path, while highlighting the fact that the government’s target to reduce the debt to GDP ratio to below 50% by 2018 has now been moved to 2020.

The authorities have also decided to reduce the country’s primary surplus to 3% of GDP for the years 2017 to 2020 compared to above 4% the past 2 years.

06.10.16

Seychelles inflation at -1.2% in year to May

Posted in Seychelles' statistics at 1:08 pm by Robert Klien

Seychelles inflation was -1.2% year-on-year in May compared with -1.1% a month earlier, the National Bureau of Statistics (NBS), the statistics office, said in a statement.

04.12.16

Seychelles inflation at -3.2% in year to March

Posted in Business and Economy, Seychelles' statistics at 3:00 pm by Robert Klien

Seychelles’ year-on-year inflation dropped to -3.2% in March from -0.6% in the previous month, the statistics office said, driven lower by a sharp fall in fish and other food prices.

Month-on-month inflation stood at -0.2% in March compared to 0% in February, the National Bureau of Statistics (NBS) said in a statement.

03.30.16

IMF says Seychelles needs to offset Income Tax Cuts

Posted in Business and Economy, International Organisations, Seychelles banking, Seychelles government, Seychelles' statistics at 2:11 pm by Robert Klien

According to the statement following an International Monetary Fund (IMF) staff mission to the Seychelles from March 9-22, the anti-poverty initiatives mentioned in last month’s State of the Nation Address need to be counteracted by other measures.

In his State of the Nation Address, the President Michel disclosed that, as well as minimum wage and pension increases, changes will be made from July 2016 to the personal income tax system, aimed to make it more progressive and reduce the tax burden on low-income earners.

At the conclusion of the IMF’s visit to conduct discussions on the 4th review under the Extended Fund Facility (EFF) arrangement with the Seychelles, the mission noted that, while the economy performed positively in 2015, “slowing growth or recession in a number of key tourism markets could weigh on economic developments in 2016.”

At the end of the IMF’s third EFF review, in January 2016, the International Monetary Fund had concluded that “continued fiscal discipline will be a critical anchor for macroeconomic stability.” It was confirmed that fiscal policy in 2016 continued to target a primary surplus of 3.8% of GDP (gross domestic product). However, the Fund’s latest mission estimated that the newly announced measures “would entail substantial fiscal costs – around three percent of GDP on a full-year basis.” It concluded that “it is important that policies to ensure that the economic benefits from years of strong fiscal consolidation are shared more widely do not undermine macroeconomic stability. The mission therefore recommends that [the new measures] be accompanied by offsetting measures to avoid putting pressure on the balance of payments, inflation, and public debt.”

In that respect, immediately following the IMF mission, the Central Bank of Seychelles (CBS) took steps to reduce the excess liquidity within the monetary system. After analyzing the recent measures announced by the Government of the Seychelles, CBS was counteracting an expected increase in liquidity and demand for foreign currency in the coming months.

12.07.15

Seychelles year-on-year inflation at 4% in November

Posted in Seychelles' statistics at 1:20 pm by Robert Klien

Seychelles’ inflation rose to 4% year-on-year in November from 3.6% the previous month, data from the statistics office showed.

Month-on-month inflation stood at -0.1% from -0.7% in October, the National Bureau of Statistics (NBS) said in a statement.

07.08.15

Seychelles’ June inflation at 4.3% year-on-year

Posted in Seychelles' statistics at 1:07 pm by Robert Klien

Seychelles’ inflation rate inched up to 4.3% year-on-year in June from 4% a month earlier, data from the statistics office showed.

Month-on-month inflation stood at 0.5% in June compared with -0.1% in May, the National Bureau of Statistics (NBS) said in a statement.

06.25.15

Seychelles’ economy growing at 3.5% in 2015, IMF says

Posted in Business and Economy, International Organisations, Seychelles' statistics at 10:34 am by Robert Klien

The International Monetary Fund expects Seychelles’ economy to expand by 3.5% this year compared with 3.3% a year earlier, thanks to a sustained recovery in tourism and lower fuel prices.

According to the IMF, it expected the country’s large current account deficit to shrink this year due to tighter monetary policy and the lower costs of fuel. Tourism is a major economic activity in the Seychelles.

06.09.15

Seychelles’ May inflation at 4% year-on-year

Posted in Business and Economy, Seychelles' statistics at 10:46 am by Robert Klien

Seychelles’ inflation rate inched up to 4% year-on-year in May from 3.7% in April, data from the statistics office showed.

Month-on-month inflation stood at -0.1% in May compared with -1.9% in April, the National Bureau of Statistics (NBS) said in a statement.

05.04.15

Seychelles to follow IMF standard for data dissemination

Posted in Business and Economy, International Organisations, Seychelles' statistics at 12:38 pm by Robert Klien

Seychelles has committed itself to make available economic and financial data to the public in a more frequent and timely manner. The jurisdiction has subscribed to the International Monetary Fund (IMF), IMF’s Special Data Dissemination Standard (SDDS).

This platform was established by the IMF in 1996 to encourage member countries to provide good quality data that can be accessible to the public.

In a press statement on May 1, 2015, IMF said Seychelles has become its 64th member country and the third Sub-Saharan African nation to subscribe to the SDDS after South Africa and Mauritius. According to Director of the IMF’s Statistics Department, “Seychelles’ subscription to the SDDS represents a major step forward for official statistics in the country and for those who use these data”. He said that “The subscription to the standards underscores Seychelles’ strong commitment to transparency, as well as the adoption of internationally accepted best practices in statistics.”

There are 4 main categories of information required:
– the real sector which comprises for example of national accounts, labour market and consumer price index among others which are information compiled by the Seychelles National Bureau of Statistics (NBS);
– the fiscal sector which includes general government operations and government debt which is the Ministry of Finance, Trade and the Blue Economy’s responsibility to compile;
– the financial sector which has to do mainly with the monetary issues;
– the external sector including balance of payments, investment position among others.

By adhering to the IMF standard, all the above-mentioned information is to be presented in a more collective manner and it is the National Bureau of Statistics that has been mandated to ensure that data from the 4 sectors are collected and passed on to the International Monetary Fund.

04.18.15

Seychelles maintains 2nd best position in the African region in 2015 Global ICT report

Posted in Business and Economy, International Organisations, Seychelles companies, Seychelles infrastructure, Seychelles' statistics at 12:29 pm by Robert Klien

Seychelles has maintained its ranking as the 2nd best in Africa in the Networked Readiness Index (NRI) 2015. However, the jurisdiction has dropped from position 66 out of 148 countries in 2014 to 74 out of 143 countries assessed in 2015.

The global information technology report was compiled by the World Economic Forum – the non-profit international organization based in Switzerland. The report assessed 143 countries based on their capacities in the information and communication technology (ICT) sectors.

The classification is based on 52 individual indicators categorized under 10 different pillars including the political and regulatory environment, business and innovation, infrastructure, affordability, skills, individual usage, business usage, government usage, as well as economic and social impacts.

Seychelles has improved its score in the readiness subindex for infrastructure and digital content to 61 overall in 2015 from 74 in 2014. The area where there has been the most improvement under this subindex is affordability, where Seychelles ranks 93 compared to 113 in 2014. Skills have also improved to 42 from 44 in last year’s ranking. However, the Seychelles’ score in 3 other main subindices of environment, usage and impact have witnessed a drop in 2015 from a score of 62, 64 and 77 in 2014 to 79, 70 and 85 respectively.

The neighbouring Indian Ocean island of Mauritius has not only maintained its ranking as the best in Africa but has also climbed up 3 places to 45 position from 48 in 2013. In the African region, South Africa is now 3rd in the region behind Mauritius and Seychelles.

According to a report published by the International Telecommunications Union in 2013, Seychelles has 100% mobile phone penetration, 47% of the population uses the Internet, and there is 12% fixed (wired)-broadband penetration. The jurisdiction has 2 telecoms providers, Airtel Seychelles and Cable & Wireless Seychelles. Kokonet and Intelvision are 2 local companies providing internet services.

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