IMF Mission Completes first EFF/RST Review - 'Seychelles economic recovery continues'

October 03, 2023

A mission from the International Monetary Fund (IMF) has completed its first review under the new Extended Fund Facility and Resilience Sustainability Trust, which was approved by the Executive Board at the end of May, 2023.

This morning, the mission, jointly with the Ministry of Finance, National Planning and Trade, and Central Bank of Seychelles, held a press conference.

The staff level agreement issued at the end of the mission, concluded that 'the Seychellois economy continues to recover in 2023. Real GDP growth is projected at 3.8percent in 2023, based largely on a continued increase in tourist arrivals. This outlook is subject to continued risks given the challenging international environment and uncertainty around tourist arrivals and average spending. Year-on-year inflation was negative (-2.4percent) as of August, reflecting the impact of lower international commodity prices on food inflation as well as moderating prices for housing and utilities.

“The government’s primary fiscal position is expected to be near balance in 2023—stronger than expected at the outset of the EFF/RSF program. Favorable revenue performance is offsetting a projected decline in external grants, and overall spending is less than projected
due to an under-execution of capital expenditures."

Click on the full statement below.


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