Seychelles gained independence in 1976 through negotiations with Great Britain. In 1977, Prime Minister France-Albert RENE launched a coup against the country's first president, and Seychelles became a socialist one-party state until adopting a new constitution and holding elections in 1993. May 22, 2024
Heavy rainfall, landslides, floods in the north of Mahé island, and a massive explosion in a critical industrial zone damaged commercial buildings, houses, and public infrastructure at the end of 2023. This incident has impacted growth and increased household vulnerability in the affected areas.
The appreciation of the rupee and moderation in global commodity prices in 2023 contributed to declining domestic prices, with year-end inflation of -2.7 %. However, inflation is projected to increase to 3.4% in 2024, averaging 2.5% in the medium term, reflecting increases in domestic utility tariffs to be implemented in 2024. The Seychelles government remains committed to fiscal prudence after successive consolidation efforts implemented since 2021, which has improved the economy’s resilience in addressing external shocks. Public debt is on a sustainable path and has declined to 60.1% of GDP in 2023. The banking sector has remained liquid and well-capitalized, with a slight increase in non-performing loans to 8.1% in December 2023 (from 7.6% in December 2022), reflecting the removal of COVID-19 pandemic forbearance measures on businesses. The current account deficit narrowed to an estimated 5.6% of GDP in 2023. The deficit is financed by foreign direct investments, equivalent to 13.8% of GDP, primarily from investments in hotels and resorts. The country’s foreign exchange reserves increased to $681 million in 2023, equivalent to 3.8 months of imports.
Development
Challenges
Seychelles faces development challenges centered on enhancing productivity and boosting overall economic performance to foster greater shared prosperity. Labor earnings have been central to reducing poverty, yet labor and skills shortages and a growing rate of teenage pregnancy, as well as drug and alcohol addiction, constrain further advances. Some related institutional challenges are notable barriers to starting and operating businesses, inefficiencies in public sector management, such as limited statistical capacity, scope for a more strategic and sustainable approach to social protection, and the need to broaden access to quality education and skills development. Climate change adaptation is also essential through improvements in disaster preparedness systems and enhanced coastal management. Near-term priorities include maintaining debt sustainability and continued reform of the social protection system to support the most vulnerable. In the medium term, the focus will be increasing revenues and boosting capital expenditures to invest in climate change mitigation. As part of the structural reform agenda, revenue administration, public financial management, and governance could be prioritized, including a digitalization strategy and the reform of state-owned enterprises. Last Updated: Apr 08, 2024
https://www.worldbank.org/en/country/seychelles/overview#:~:text=Heavy%20rainfall%2C%20landslides%2C
Norb Leahy, Dunwoody GA Tea Party Leader
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