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Seychelles’ economy continues to record a strong recovery in 2022. The debt vulnerability has been substantially reduced as tourism activity rebounds, according to the International Monetary Fund (IMF) Mission Chief Calixte Ahokpossi
Seychelles’ economy continues to record a strong recovery in 2022. The debt vulnerability has been substantially reduced as tourism activity rebounds, according to the International Monetary Fund (IMF) Mission Chief Calixte Ahokpossi. He made the statement during a press conference following a two-week mission in Seychelles for the third review of Seychelles’ economic and financial programme supported by the Extended Fund Facility (EFF) Arrangement.
Seychelles’ finance minister, Naadir Hassan, said that by December 2022, the island nation is projected to see economic growth of 10.6 percent. Growth was previously expected at around 7 percent in 2022. Yet, there are several downsides that have to be factored including the continuing war in Ukraine.
The IMF delegation said that the debt vulnerabilities have been substantially reduced, helped by the strong rebound in tourism, the successful implementation of the Liability Management Operation in 2021, the rupee appreciation, and the ambitious fiscal consolidation. By the end of the year, the country’s debt to GDP is projected to reach 67.9 percent and by 2023, it will fall to 64.7 percent.
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The IMF mission also said that inflation in Seychelles has been relatively subdued this year, moderated to 2.8 percent by the end of August since the same period last year. It is projected to average 3 percent in 2022, against 9.8 percent in 2021. Since the start of the Extended Fund Facility programme by the IMF in Seychelles, a total of US$72.6 million has already been disbursed, of the programme’s total US$107 million.. A further US$9.5 million is expected to be disbursed in December.
