<\/p>\n
The economy expanded by 5.8% in 2025, but reduced visitor numbers between March and June weakened growth during 2026. \u201cThe effects of the Middle East conflict have been visible in a reduction in tourist arrivals, particularly during March-June,\u201d IMF Mission Chief Todd Schneider said.<\/p>\n
<\/p>\n
\u201cSubsequent months have seen a nascent recovery in arrivals, but real GDP growth for 2026 is projected at 1%.\u201d<\/p>\n
<\/p>\n
An IMF team led by Schneider visited Victoria from September 21 to September 30 to conduct Seychelles\u2019 Post-Financing Assessment.<\/p>\n
<\/p>\n
A Post-Financing Assessment reviews the policies and economic outlook of a country with substantial outstanding IMF credit but without an IMF-supported or staff-monitored programme.<\/p>\n
<\/p>\n
The assessment also considers Seychelles\u2019 medium-term economic viability and capacity to repay the IMF.<\/p>\n
<\/p>\n
Annual inflation remained moderate at 0.9% through August despite rising international commodity prices.<\/p>\n
<\/p>\n
State-owned enterprises absorbed part of the increase through subsidies intended to limit the effect on domestic consumers.<\/p>\n
<\/p>\n
However, the cost weakened the balance sheets of some state-owned enterprises and reduced dividend payments to the government budget. \u201cHeadline inflation remained moderate at 0.9% through August, reflecting a subsidy through state-owned enterprises to limit the pass-through of rising international commodity prices to domestic markets,\u201d Schneider said.<\/p>\n
<\/p>\n
\u201cThe cost of these subsidies has deteriorated some state-owned enterprise balance sheets and reduced dividend payments to the government budget.\u201d<\/p>\n
<\/p>\n
Seychelles\u2019 external position remained broadly stable despite the economic shock.<\/p>\n
<\/p>\n
The Seychelles rupee was broadly stable against the US Dollar, while central bank foreign-exchange reserves remained equivalent to about four months of imports.<\/p>\n
<\/p>\n
The IMF said the effect on the financial sector also appeared limited. \u201cThe external sector has remained broadly stable despite the recent shock,\u201d Schneider said.<\/p>\n
<\/p>\n
\u201cThe Rupee has been broadly stable vis-\u00e0-vis the US Dollar, and central bank foreign-exchange reserves remain at about four months of import cover.\u201d<\/p>\n
<\/p>\n
The IMF Executive Board is expected to consider Seychelles\u2019 Post-Financing Assessment in December 2026.<\/p>\n
<\/p>\n
–IMF\/ChannelAfrica–<\/p>\n
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