Seychelles Economy - 2005

Economy - overview:
Since independence in 1976, per capita output in this Indian Ocean archipelago has expanded to roughly seven times the old near-subsistence level. Growth has been led by the tourist sector, which employs about 30% of the labor force and provides more than 70% of hard currency earnings, and by tuna fishing. In recent years the government has encouraged foreign investment in order to upgrade hotels and other services. At the same time, the government has moved to reduce the dependence on tourism by promoting the development of farming, fishing, and small-scale manufacturing. A sharp drop illustrated the vulnerability of the tourist sector in 1991-92 due largely to the Gulf war, and once again following the 11 September 2001 terrorist attacks on the US. Growth slowed in 1998-2002, and fell in 2003, due to sluggish tourist and tuna sectors, but resumed in 2004, erasing a persistent budget deficit. Tight controls on exchange rates and the scarcity of foreign exchange have impaired short-term economic prospects. The black market value of the Seychelles rupee is half the official exchange rate; without a devaluation of the currency the tourist sector may remain sluggish as vacationers seek cheaper destinations such as Comoros, Mauritius, and Madagascar.

GDP:
purchasing power parity - $626 million (2002 est.)

GDP - real growth rate:
1.5% (2004 est.)

GDP - per capita:
purchasing power parity - $7,800 (2002 est.)

GDP - composition by sector:
agriculture: 2.8%
industry: 28.7%
services: 68.9% (2004 est.)

Labor force:
30,900 (1996)

Labor force - by occupation:
agriculture 10%, industry 19%, services 71% (1989)

Unemployment rate:
NA

Population below poverty line:
NA

Household income or consumption by percentage share:
lowest 10%: NA
highest 10%: NA

Inflation rate (consumer prices):
5% (2004 est.)

Investment (gross fixed):
39.5% of GDP (2004 est.)

Budget:
revenues: $318.3 million
expenditures: $298.5 million, including capital expenditures of NA (2004 est.)

Public debt:
122.8% of GDP (2004 est.)

Agriculture - products:
coconuts, cinnamon, vanilla, sweet potatoes, cassava (tapioca), bananas; broiler chickens; tuna fish

Industries:
fishing; tourism; processing of coconuts and vanilla, coir (coconut fiber) rope, boat building, printing, furniture; beverages

Industrial production growth rate:
NA

Electricity - production:
218 million kWh (2002)

Electricity - consumption:
202.8 million kWh (2002)

Electricity - exports:
0 kWh (2002)

Electricity - imports:
0 kWh (2002)

Oil - production:
0 bbl/day (2001 est.)

Oil - consumption:
4,000 bbl/day (2001 est.)

Oil - exports:
NA

Oil - imports:
NA

Current account balance:
$-98.42 million (2004 est.)

Exports:
$256.2 million f.o.b. (2004 est.)

Exports - commodities:
canned tuna, frozen fish, cinnamon bark, copra, petroleum products (reexports)

Exports - partners:
UK 29.1%, France 17.1%, Spain 11.8%, Japan 9.2%, Italy 8.1%, Germany 6.2%, Netherlands 4.3% (2004)

Imports:
$393.4 million f.o.b. (2004 est.)

Imports - commodities:
machinery and equipment, foodstuffs, petroleum products, chemicals

Imports - partners:
Saudi Arabia 15.6%, Spain 14.1%, France 11%, Singapore 7.5%, Italy 7.3%, South Africa 7.3%, UK 5% (2004)

Reserves of foreign exchange and gold:
$70.94 million (2004 est.)

Debt - external:
$218.1 million (2004 est.)

Economic aid - recipient:
$16.4 million (1995)

Currency (code):
Seychelles rupee (SCR)

Exchange rates:
Seychelles rupees per US dollar - 5.5 (2004), 5.4007 (2003), 5.48 (2002), 5.8575 (2001), 5.7138 (2000)