Updated: March 4, 2021
The economy of Seychelles is growing strong as expected, and is estimated to reach about 4 percent growth in 2019, reflecting strong output in the tourism and communication sectors, the International Monetary Fund (IMF) said in a statement on Wednesday from Washington D.C.
According to the IMF, the near-to-medium-term economic outlook continues to be favorable, “provided that the authorities maintain their prudent policies under the Policy Coordination Instrument”.
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“Economic growth is estimated to reach around 4 percent, reflecting strong output in the tourism and communication sectors. Inflation has been on a declining trend since early 2018. The gross international reserves remain at an adequate level,” IMF said.
“The Central Bank of Seychelles (CBS) lowered the monetary policy rate at end-September 2019, citing benign inflationary pressures in the coming months. Program implementation is largely on track, while the 2020 budget submitted to the National Assembly is in line with the program. The near-to-medium-term economic outlook continues to be favorable, provided that the authorities maintain their prudent policies under the PCI”.
The IMF’s assessment came after its Executive Board completed the fourth review under the Policy Coordination Instrument (PCI) for Seychelles. The Executive Board’s decision was taken without a meeting.
The PCI was approved on December 13, 2017. Seychelles was the first IMF member country to request a PCI, since the Executive Board of the IMF approved the PCI as a new non-financing instrument to further enhance the effectiveness of the Fund’s toolkit.
According to the IMF, the authorities in Seychelles are committed to the primary fiscal surplus target of 2½ percent of GDP through 2022, by steadily reducing the public debt-to-GDP ratio over the medium term and implementing permanent measures envisaged in the 2020 budget.