Author/Editor:

International Monetary Fund. African Dept.

Publication Date:

May 19, 2020

Electronic Access:

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Summary:

In recent years, economic growth has been robust and inflation low, while the external and fiscal positions have improved. These hard-won gains, supported by three successive Fund financial programs, followed by the Policy Coordination Instrument (PCI), which was approved in 2017, are at risk of being eroded by the severe impact of the COVID-19 pandemic. The authorities have taken decisive measures to prevent a local outbreak and to mitigate the economic impact on affected businesses and the most vulnerable households. Nonetheless, given Seychelles’ heavy dependence on tourism, the economy is being very badly hit, with GDP likely to drop by over 10 per-cent this year.