Seychelles Economy - 2021

Economic overview

Since independence in 1976, per capita output in this Indian Ocean archipelago has expanded to roughly seven times the pre-independence, near-subsistence level, moving the island into the high income group of countries. Growth has been led by the tourism sector, which directly employs about 26% of the labor force and directly and indirectly accounts for more than 55% of GDP, and by tuna fishing. In recent years, the government has encouraged foreign investment to upgrade hotels and tourism industry services. At the same time, the government has moved to reduce the dependence on tourism by promoting the development of the offshore financial, information, and communication sectors and renewable energy.

In 2008, having depleted its foreign exchange reserves, Seychelles defaulted on interest payments due on a $230 million Eurobond, requested assistance from the IMF, and immediately enacted a number of significant structural reforms, including liberalization of the exchange rate, reform of the public sector to include layoffs, and the sale of some state assets. In December 2013, the IMF declared that Seychelles had successfully transitioned to a market-based economy with full employment and a fiscal surplus. However, state-owned enterprises still play a prominent role in the economy. Effective 1 January 2017, Seychelles was no longer eligible for trade benefits under the US African Growth and Opportunities Act after having gained developed country status. Seychelles grew at 5% in 2017 because of a strong tourism sector and low commodity prices. The Seychellois Government met the IMF’s performance criteria for 2017 but recognizes a need to make additional progress to reduce high income inequality, represented by a Gini coefficient of 46.8.

As a very small open economy dependent on tourism, Seychelles remains vulnerable to developments such as economic downturns in countries that supply tourists, natural disasters, and changes in local climatic conditions and ocean temperature. One of the main challenges facing the government is implementing strategies that will increase Seychelles' long-term resilience to climate change without weakening economic growth.

Real GDP growth rate

5.3% (2017 est.)

4.5% (2016 est.)

4.9% (2015 est.)

Inflation rate (consumer prices)

1.8% (2019 est.)

3.7% (2018 est.)

2.8% (2017 est.)

Credit ratings

Fitch rating: B+ (2020)

Real GDP (purchasing power parity)

$2.852 billion (2019 est.)

$2.709 billion (2018 est.)

$2.611 billion (2017 est.)

note: data are in 2010 dollars

GDP (official exchange rate)

$1.748 billion (2019 est.)

Real GDP per capita

$29,223 (2019 est.)

$27,997 (2018 est.)

$27,243 (2017 est.)

note: data are in 2010 dollars

Gross national saving

12.4% of GDP (2019 est.)

13.1% of GDP (2018 est.)

13.4% of GDP (2017 est.)

GDP - composition, by sector of origin

agriculture: 2.5% (2017 est.)

industry: 13.8% (2017 est.)

services: 83.7% (2017 est.)

GDP - composition, by end use

household consumption: 52.7% (2017 est.)

government consumption: 34.4% (2017 est.)

investment in fixed capital: 26.7% (2017 est.)

investment in inventories: 0% (2017 est.)

exports of goods and services: 79.4% (2017 est.)

imports of goods and services: -93.2% (2017 est.)

Ease of Doing Business Index scores

Overall score: 61.7 (2020)

Starting a Business score: 78.8 (2020)

Trading score: 71.8 (2020)

Enforcement score: 51.2 (2020)

Agricultural products

coconuts, vegetables, bananas, fruit, eggs, poultry, tomatoes, pork, tropical fruit, cassava

Industries

fishing, tourism, beverages

Industrial production growth rate

2.3% (2017 est.)

Labor force

51,000 (2018 est.)

Labor force - by occupation

agriculture: 3%

industry: 23%

services: 74% (2006)

Unemployment rate

3% (2017 est.)

2.7% (2016 est.)

Population below poverty line

25.3% (2018 est.)

Gini Index coefficient - distribution of family income

46.8 (2013 est.)

Household income or consumption by percentage share

lowest 10%: 4.7%

highest 10%: 15.4% (2007)

Budget

revenues: 593.4 million (2017 est.)

expenditures: 600.7 million (2017 est.)

Taxes and other revenues

39.6% (of GDP) (2017 est.)

Budget surplus (+) or deficit (-)

-0.5% (of GDP) (2017 est.)

Public debt

63.6% of GDP (2017 est.)

69.1% of GDP (2016 est.)

Fiscal year

calendar year

Current account balance

-$307 million (2017 est.)

-$286 million (2016 est.)

Exports

$564.8 million (2017 est.)

$477.6 million (2016 est.)

Exports - partners

United Arab Emirates 17%, United Kingdom 13%, France 12%, British Virgin Islands 11%, Zambia 9%, Mauritius 5%, Japan 5% (2019)

Exports - commodities

refined petroleum, fish, recreational boats, cigarettes, animal meal (2019)

Imports

$1.155 billion (2017 est.)

$991 million (2016 est.)

Imports - partners

United Arab Emirates 21%, Qatar 13%, British Virgin Islands 7%, Germany 6%, France 6%, China 5%, Spain 5%, South Africa 5% (2019)

Imports - commodities

recreational boats, refined petroleum, fish, aircraft, cars (2019)

Reserves of foreign exchange and gold

$545.2 million (31 December 2017 est.)

$523.5 million (31 December 2016 est.)

Debt - external

$4.802 billion (2019 est.)

$4.613 billion (2018 est.)

Exchange rates

Seychelles rupees (SCR) per US dollar -

13.64 (2017 est.)

13.319 (2016 est.)

13.319 (2015 est.)

13.314 (2014 est.)

12.747 (2013 est.)