Minister Hassan says he is 'positively encouraged' by the economic recovery
May 17, 2021
The Minister for Finance, Economic Planning and Trade, Naadir Hassan, has told Seychelles Nation, he is ‘positively encouraged’ by the economic recovery, but he has urged caution as he warned ‘we are not out of the woods yet.’
He told the daily newspaper that the tourism sector is showing some very positive signs since the reopening of the country on 25th March.
The arrival numbers are not at ‘pre COVID level’, but ‘it is a significant improvement.’
According to figures from the National Bureau of Statistics, (NBS), over 14,000 visitors were recorded in Seychelles for the month of April.
“With this, other supporting sectors of the economy have been able to function also.”
The kick start of economic activities has meant a revision in the economic outlook for this year. The Ministry of Finance, Economic Planning and Trade has tentatively revised upward the Real GDP growth to 4.4% compared to 2.8% estimated for the Budget 2021.
The Central Bank of Seychelles has estimated the tourism earnings for the month of April at $24.7 million compared to just $1.2 million for the same month in 2020.
Speaking to journalist, Vidya Gappy, Minister Hassan warned, though, that the current economic activities are still at a ‘critical stage’.
“We cannot think that everything is back to normal as everything is not back to normal. We are at the very beginning of the economic recovery and there is a lot of downside risks and we need to manage those risks carefully so that our recovery is sustained and can accelerate as the pandemic is under control.”
The Minister also explained that negotiations with the International Monetary Fund (IMF) are still ongoing for Seychelles to get an IMF endorsed programme.
“Right now, there is a lot of number crunching that is going on. Given the magnitude of the shock we got from the pandemic, this means the negotiations are more complex.”
Asked about the sustainability of the country’s debt, Minister Hassan explained that the government had to borrow domestically to finance the budget deficit, and usually domestic loans bears high interest.
“We will have to restructure this whole debt situation whereby we come to replace some of the domestic debt with external debt. This will reduce the interest rate on our debts.
Minister Hassan noted that going forward there will be more discipline in the government’s expenditure, in order to narrow the deficit.
“It sounds simple, but it’s a lot of work.”
Ending his interview with Seychelles Nation, which was published on Saturday 15th May, Minister Hassan called for everyone to come forward and do their part to assist in the economic recovery of Seychelles.
“This is our country and it is all of us that will make or break our economic recovery.”
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Source: Seychelles Nation