Seychelles Economy 2007

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 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. Sharp drops 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. Growth turned negative again in 2005-06. 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 (official exchange rate):
$712 million (2006 est.)

GDP - real growth rate:
-1% (2006 est.)

GDP - per capita (PPP):
$7,800 (2002 est.)

GDP - composition by sector:
agriculture: 2.5%
industry: 26.3%
services: 71.2% (2006 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):
-0.4% (2006 est.)

Investment (gross fixed):
9.5% of GDP (2006 est.)

Budget:
revenues: $439.7 million
expenditures: $408.5 million (2006 est.)

Public debt:
134.4% of GDP (2006 est.)

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

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

Industrial production growth rate:
NA%

Electricity - production:
208 million kWh (2005)

Electricity - consumption:
193.4 million kWh (2005)

Electricity - exports:
0 kWh (2005)

Electricity - imports:
0 kWh (2005)

Oil - production:
0 bbl/day (2004 est.)

Oil - consumption:
5,600 bbl/day (2004 est.)

Oil - exports:
NA bbl/day

Oil - imports:
NA bbl/day

Oil - proved reserves:
0 bbl (1 January 2006)

Natural gas - production:
0 cu m (2005 est.)

Natural gas - consumption:
0 cu m (2005 est.)

Current account balance:
$-167 million (2006 est.)

Exports:
$423 million f.o.b. (2006 est.)

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

Exports - partners:
UK 25.5%, France 17.5%, Italy 11.9%, Mauritius 8.5%, Japan 8.3%, Spain 8.1%, Netherlands 4.3% (2006)

Imports:
$706 million f.o.b. (2006 est.)

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

Imports - partners:
Saudi Arabia 17.7%, South Africa 9.7%, Spain 8.1%, France 7.6%, Singapore 7.2%, Italy 4.8%, UK 4% (2006)

Economic aid - recipient:
$18.81 million (2005)

Reserves of foreign exchange and gold:
$112.9 million (2006 est.)

Debt - external:
$847 million (2006 est.)

Market value of publicly traded shares:
$NA

Currency (code):
Seychelles rupee (SCR)

Exchange rates:
Seychelles rupees per US dollar - 5.5 (2006), 5.5 (2005), 5.5 (2004), 5.4007 (2003), 5.48 (2002)