The IMF team, led by Mission Chief Todd Schneider, said Seychelles\u2019 economic performance in 2025 had been robust. Real gross domestic product (GDP) growth is estimated at 5.1%, driven largely by record tourist arrivals and supported by near\u2011zero inflation.<\/p>\n
<\/p>\n
Strong fiscal discipline resulted in a primary surplus of 2.5% of GDP, helping reduce public debt to 53.6%of GDP. Higher tourism earnings also narrowed the external current account deficit to 6.5% of GDP and lifted foreign exchange reserves to more than four months of import cover.<\/p>\n
<\/p>\n
The IMF noted strong progress under the EFF, with all quantitative targets for mid\u20112025 met and all but one achieved at year\u2011end. Most structural reforms have been completed or are nearing completion, though two will require more time. A planned pilot mechanism for banks to purchase government securities has been delayed pending the establishment of a Real Time Gross Settlement System and a Central Securities Depository. Pilot functional reviews of key ministries are now expected by the end of 2026 with World Bank support.<\/p>\n
<\/p>\n
Climate\u2011related reforms under the RSF are also progressing, including measures to improve the management and reporting of climate\u2011related financial risks. Remaining actions, such as a banking\u2011sector climate risk assessment and an electricity tariff reform framework, are on track for completion before the end of the programme.<\/p>\n
<\/p>\n
However, the Middle East conflict poses new risks. The IMF projects Seychelles\u2019 GDP growth will slow sharply to 1.5% in 2026 due to disrupted air connectivity and reduced tourist spending. Inflation is expected to rise to 2.6%, while the external deficit could widen to 7.8% of GDP. Lower tourism activity is also likely to weaken fiscal revenues.<\/p>\n
<\/p>\n
The mission recommended contingency measures to protect the most vulnerable, continued exchange\u2011rate flexibility, and a stronger focus on structural reforms to support diversification, resilience and inclusive growth. Schneider praised the authorities for constructive engagement, saying the IMF remains committed to supporting Seychelles\u2019 reform efforts as the programme nears completion.<\/p>\n
<\/p>\n
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