Seychelles Economy
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Seychelles’ economy is heavily dependent on tourism and related activities. As much as 70 percent of Seychelles’ currency earnings come from tourist sector. Tuna fishing has also been a revenue generating sector for Seychelles. The nation is also trying to focus on other areas like farming and small scale manufacturing.
Seychelles GDP
In 2007, Seychelles GDP was estimated to be about $1.378 billion. That was about 5.3 percent increase over Seychelles’ previous year GDP. Services contributed nearly 70 percent to Seychelles GDP, followed by industry (28 percent). In 2007, agriculture sector accounted for only 2 percent of Seychelles’ GDP. In 2007, GDP per capita was around $16,600.
Inflation
In early 2000s, inflation in Seychelles was around 3 percent. In 2007, inflation rate touched nearly 7 percent. High inflation has been a source of worry for Seychelles’ government.
Imports and exports
In 2007, Seychelles imports were worth about $823 million. Machinery, equipment, petroleum products, chemicals, and foodstuffs, were the major commodities imported to Seychelles. Major import partners for Seychelles included Saudi Arabia, Germany, France, Spain, and South Africa. In 2007, total Seychelles’ exports amounted to $395 million. Commodities like canned tuna, cinnamon bark, frozen fish, and petroleum products were exported to other countries. Major export partners for Seychelles included UK, France, Mauritius, Japan, Italy, and Spain.
Weaknesses
Too much dependence on tourism sector is one weakness that Seychelles has to overcome. Government is actively trying to promote other industries in Seychelles. Low foreign investment is another impediment to Seychelles’ economy.
Future of Seychelles
Seychelles government is trying to boost-up other sectors like fishing and small scale manufacturing. However, tourism continues to contribute significantly to Seychelles’ economy. More than 30 percent of Seychelles’ labor force are employed with the tourism sector. Seychelles is also trying to attract foreign investment for upgrading hotels and other services.
