(4 minutes read)
· Seychelles is facing a worrying phase of inflation. According to the government sources, inflation
increased by 11.25 percent from June 2020 to June 2021
· On an average, for the past 12 months, the inflation rate has been 5.93 percent, which is on the higher side
· The Central Bank Governor also referred to decrease in the number of people employed in Seychelles
Seychelles is facing a worrying phase of inflation. According to government sources, inflation increased by 11.25 percent from June 2020 to June 2021.
This was revealed by the Governor of the Central Bank of Seychelles, Caroline Abel, recently at a press conference.
On an average, for the past 12 months, the inflation rate has been 5.93 percent, which is on the higher side. The Governor said that globally prices of food and energy are on the rise. She conceded that this would have had an impact on the Seychelles economy.
Abel said the current forecast suggests that the prices would drop only by 2022 depending on the COVID-19 situation, which was unpredictable. Also, the number of tourists visiting the country would be a decisive factor. A substantial chunk of foreign exchange and GDP of the country come from the tourism sector. Developments in South Africa and India, from where a large number of people visit the Island Nation are also an important factor. South Africa is in the grip of a third wave amidst serious law and order problems in certain parts of the country. India is facing travel bans from several countries on account of the high incidence of Covid-19 cases.
The Central Bank Governor also referred to the decrease in the number of people employed in Seychelles, along with a significant drop in average earnings per employee. The average number of employed persons in all sectors was 49,923, during the first quarter of 2021. That was 8.9 percent lower during the same period in 2020. Many foreigners and local people lost jobs during Covid-19 pandemic She urged the government to be more responsible with their spending, stating that a shift in individual and collective behavior was critical for the Seychelles’ economy to bounce back.
