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The Economy of Seychelles

Seychellois Economy

Seychelles' map

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. Sharp drops illustrated the vulnerability of the tourist sector in 1991-92 due largely to the Gulf War and once again following the 11 September 2001 terrorist attacks on the US. Economic growth slowed in 1998-2002 and fell in 2003-04, due to sluggish tourist and tuna sectors, but resumed in 2005-07. Real GDP grew by 5.8% in 2007, 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 is struggling to maintain its gains and in 2008 suffered from food and oil price shocks, a foreign exchange shortage, high inflation and large financing gaps. 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:

GDP - real growth rate: 3.1% (2008 est.) 7.3% (2007 est.) 8.3% (2006 est.)

GDP - per capita:

GDP - composition by sector: agriculture: 1.9% industry: 28.3% services: 69.9% (2008 est.)

Population below poverty line:

Household income or consumption by percentage share: lowest 10%: NA% highest 10%: NA%

Distribution of family income - Gini index:

Inflation rate (consumer prices):

Labor force: 39,560 (2006)

Labor force - by occupation: agriculture: 3% industry: 23% services: 74% (2006)

Unemployment rate: 2% (2006 est.)

Budget: revenues: $318.1 million expenditures: $324.6 million (2008 est.)

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

Industrial production growth rate: 4% (2008 est.)

Electricity - production: 208 million kWh (2006 est.)

Electricity - production by source:

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 - exports: 0 bbl/day (2006)

Oil - imports: 5,722 bbl/day (2005)

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.)

Agriculture - products: coconuts, cinnamon, vanilla, sweet potatoes, cassava (tapioca), bananas; poultry; tuna

Exports: $425 million f.o.b. (2008 est.)

Exports - commodities: canned tuna, frozen fish, cinnamon bark, copra, petroleum products (reexports)

Exports - partners: UK 23.7%, France 19.8%, Mauritius 10%, Japan 8.3%, Italy 5.7%, Spain 5.1% (2007)

Imports: $952 million f.o.b. (2008 est.)

Imports - commodities: machinery and equipment, foodstuffs, petroleum products, chemicals

Imports - partners: Saudi Arabia 17.6%, Germany 10.8%, France 8.1%, Spain 7.6%, South Africa 6.4%, Singapore 5.8% (2007)

Debt - external: $1.161 billion (31 December 2008 est.)

Economic aid - recipient:

Currency:

Currency code:

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: