A new report prepared and compiled by the African Development Bank, in collaboration with the Ministry of Finance, Economic Planning and Trade has confirmed that the measures being taken by the Government to stabilize the economy and budget are the right ones.
The findings of the report were made public on Tuesday 23rd November in a ceremony at Eden Bleu hotel.
The study focusing on main productive economic sectors, such as tourism, fisheries, manufacturing, assessed the impact of COVID 19 pandemic on the economy of the country and the results were compiled in a report entitled “”Economic impacts of covid-19 and policy options in the Seychelles.”
Three scenarios for economic recovery after 2020 were considered in the study;
Main Scenario
Optimistic Scenario and
Pessimistic Scenario
The three scenarios differ in the speed of recovery of foreign demand for services.
Mrs. Nnenna Nwabufo, Director General for East Africa at the African Development Bank, said this study is unique.
“Thanks to this methodology that makes this study unique compared to similar studies carried out, the study led to relevant findings likely to inform policy choices of decision makers in Seychelles.”
The study indicates that diversifying away from tourism may be achieved by increasing the shares of the other activities in a growing economy through public policies.
Speaking at the launch event, Minister Naadir Hassan said the report comes at an opportune time.
“This report was prepared as part of the country dialogue and consultation. It makes use of analytical tools to assess the socio-economic dynamics in Seychelles, and provides evidence-based policy options for recovery, notably three scenarios for economic recovery post-2020.”
Minister Hassan explained that while the report validates the measures the government is currently implementing, the government will still evaluate the findings, and see how best to incorporate them in its policies, going forward.