Seychelles Economy Profile 2009

Economy - 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 upper-middle income group of countries. Growth has been led by the tourist sector, which employs about 30% of the labor force and provides more than 70% of hard currency earnings, and by tuna fishing. In recent years, the government has encouraged foreign investment to upgrade hotels and other services. At the same time, the government has moved to reduce the dependence on tourism by promoting the development of farming, fishing, and small-scale manufacturing. GDP grew about 7-8% per year in 2006-07, driven by tourism and a boom in tourism-related construction. The Seychelles rupee was allowed to depreciate in 2006 after being overvalued for years and fell by 10% in the first 9 months of 2007. Despite these actions, the Seychelles economy has struggled to maintain its gains and in 2008 suffered from food and oil price shocks, a foreign exchange shortage, high inflation and large financing gaps, with GDP growth reduced to about 3% in 2008. In July 2008 the government defaulted on a Euro amortizing note worth roughly US$80 million, leading to a downgrading of Seychelles credit rating. Seychelles requested an IMF Stand-By Agreement in December 2008.

GDP (purchasing power parity)

$1.715 billion (2008 est.)
$1.715 billion (2007 est.)
$1.599 billion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$834 million (2008 est.)

GDP - real growth rate

0% (2008 est.)
7.3% (2007 est.)
8.3% (2006 est.)

GDP - per capita (PPP)

$19,800 (2008 est.)
$20,000 (2007 est.)
$18,900 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 2%
industry: 28.9%
services: 69.2% (2008 est.)

Population below poverty line

NA%

Labor force

39,560 (2006)

Labor force - by occupation

agriculture: 3%
industry: 23%
services: 74% (2006)

Unemployment rate

2% (2006 est.)

Household income or consumption by percentage share

lowest 10%: NA%
highest 10%: NA%

Investment (gross fixed)

13.7% of GDP (2008 est.)

Budget

revenues: $260.5 million
expenditures: $291.2 million (2008 est.)

Public debt

82.1% of GDP (2008 est.)
122.8% of GDP (2004 est.)

Inflation rate (consumer prices)

37% (2008 est.)
5.3% (2007 est.)

Central bank discount rate

NA% (31 December 2008)
5.13% (31 December 2007)

Commercial bank prime lending rate

NA% (31 December 2008)
10.89% (31 December 2007)

Stock of money

$NA (31 December 2008)
$330.8 million (31 December 2007)

Stock of quasi money

$NA (31 December 2008)
$249 million (31 December 2007)

Stock of domestic credit

$NA (31 December 2008)
$660.2 million (31 December 2007)

Industries

fishing, tourism, processing of coconuts and vanilla, coir (coconut fiber) rope, boat building, printing, furniture; beverages

Industrial production growth rate

2% (2008 est.)

Electricity - production

208 million kWh (2006 est.)

Electricity - production by source

fossil fuel: 100%
hydro: 0%
nuclear: 0%
other: 0% (2001)

Electricity - consumption

193.4 million kWh (2006 est.)

Electricity - exports

0 kWh (2007 est.)

Electricity - imports

0 kWh (2007 est.)

Oil - production

0 bbl/day (2007 est.)

Oil - consumption

6,560 bbl/day (2006 est.)

Oil - imports

5,722 bbl/day (2005)

Oil - exports

0 bbl/day (2006)

Oil - proved reserves

0 bbl (1 January 2006)

Natural gas - production

0 cu m (2007 est.)

Natural gas - consumption

0 cu m (2007 est.)

Natural gas - exports

0 cu m (2007 est.)

Natural gas - imports

0 cu m (2007 est.)

Natural gas - proved reserves

0 cu m (1 January 2006 est.)

Current Account Balance

-$277 million (2008 est.)
-$274.8 million (2007 est.)

Agriculture - products

coconuts, cinnamon, vanilla, sweet potatoes, cassava (tapioca), bananas; poultry; tuna

Exports

$475 million (2008 est.)
$391.7 million (2007 est.)

Exports - commodities

canned tuna, frozen fish, cinnamon bark, copra, petroleum products (reexports)

Exports - partners

UK 22.1%, France 20%, Mauritius 10.5%, Japan 8.3%, Italy 8.1%, Netherlands 6.3%, Spain 4% (2008)

Imports

$882 million (2008 est.)
$804 million (2007 est.)

Imports - commodities

machinery and equipment, foodstuffs, petroleum products, chemicals

Imports - partners

Saudi Arabia 18.3%, Singapore 12.9%, France 10.8%, Spain 8.5%, Germany 7.4%, South Africa 5.7% (2008)

Reserves of foreign exchange and gold

$74 million (31 December 2008 est.)
$40.8 million (31 December 2007 est.)

Debt - external

$1.111 billion (31 December 2008 est.)
$1.059 billion (31 December 2007 est.)

Market value of publicly traded shares

$NA

Economic aid - recipient

$18.81 million (2005)

Currency (code)

Seychelles rupee (SCR)

Currency (code)

SCR

Exchange rates

Seychelles rupees (SCR) per US dollar - 8 (2008 est.), 6.5 (2007), 5.5 (2006), 5.5 (2005), 5.5 (2004)

Fiscal year

calendar year