Seychelles Economy

The Seychelles’ economy relies heavily on tourism and fishing. The country’s growth has been predominately led by the tourist sector, which employs about 30% of the country and provides more than 70% of its hard currency. In recent years the government has loosened regulation and encouraged foreign investment.

Moreover, the government has moved to reduce its dependence on tourism by promoting the development of other industries. The government is also trying to curb its budget deficit, contain social welfare costs, and privatize public enterprises. It’s hoped that this will open then door to new industry and encourage economic growth as well as shift reliance away from tourism.

GDP in 2007 was US$710 million and income per capita was US$16,600. This puts the island in the World Bank’s upper middle-income bracket. However, given the small size of the economy and its over dependence on one industry, the island remains vulnerable to external events. Although the per capita income is high, residents often have difficulty obtaining many goods. Government mismanagement and excessive economic regulations have resulted in foreign exchange shortages and a parallel market currency exchange rate double the official rate.

The Seychelles is also the most highly indebted country in the world according to the World Bank, with total public debt around 122.8% of GDP. Approximately two thirds is owed domestically, with the rest owed to international institutions.

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