The completion of the reviews allows for an immediate disbursement of about $41 million. The funds are intended to support macroeconomic stability, strengthen fiscal and monetary frameworks and enhance resilience to climate-related risks.
The IMF said Seychelles recorded a strong economic performance in 2025. Real gross domestic product growth was estimated at 5.1%, supported by increased tourist arrivals. Inflation remained low, with consumer prices slightly below zero at the end of the year.
Fiscal performance exceeded expectations, with a primary surplus of 2.5% of gross domestic product. Public debt declined to 53.6% of gross domestic product (GDP), while the current account deficit narrowed to 6.5% of GDP. Foreign exchange reserves increased to more than four months of import cover.
The IMF said external developments, including conflict in the Middle East, are expected to affect the outlook. Seychelles relies on transit routes through major regional hubs for around 60% of tourist arrivals and imports a large share of its energy, food and industrial goods.
Growth is projected to slow to about 1.5% in 2026, with inflation expected to rise to 3.1% by the end of the year. The fiscal surplus is forecast to decline to about 0.9% of GDP, while the current account deficit is expected to widen to 7.8%.
The IMF said programme implementation under the ECF was broadly on track. Most performance targets and structural benchmarks were achieved, with remaining measures expected to be completed after the programme.
Implementation under the RSF also progressed broadly as planned, with most reform measures completed. The IMF said risks to the outlook include disruptions to tourism, higher commodity prices and increased shipping costs. These factors may affect growth, inflation and external balances.
The IMF said continued fiscal consolidation, supported by revenue measures and expenditure management, will be important to maintain debt sustainability. Monetary policy and exchange rate flexibility were also identified as key tools to manage external shocks.
The IMF said reforms under both facilities have supported economic stability and climate resilience, with further implementation expected to strengthen long-term growth and reduce vulnerabilities.
–IMF/ChannelAfrica–
