Seychelles: 2013 Article IV Consultation, Seventh Review Under the Extended Arrangement and Request for Modification of Performance Criterion
IMF Staff Country Reports, July 11, 2013
Source details
- Canonical URL
- Seychelles: 2013 Article IV Consultation, Seventh Review Under the Extended Arrangement and Request for Modification of Performance Criterion
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Bibliographic details
- Published: July 11, 2013
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484384404.002
Key findings
- Repayment of domestic debt, a preference for foreign financing, and shallow domestic financial markets have resulted in significant structural rupee liquidity in the banking system.
- Tourism has been the main driver of growth, but there is a tension with the number of tourists the islands can absorb.
- Despite the challenging global environment, tourist arrivals have grown strongly, with diversification toward nontraditional markets more than offsetting stalling European arrivals.
- The Seychellois rupee is broadly in line with medium-term fundamentals.
- Tourism remains competitive among peers.
Macroeconomic and sectoral themes emphasized
- Structural rupee liquidity in the banking system driven by domestic debt repayment and foreign-financing preferences.
- The central role of tourism in economic growth and the constraint posed by absorption capacity of the islands.
- Market diversification in tourist source countries mitigating weakness in traditional European arrivals.
Subjects and keywords (as presented)
- Subjects: Credit, Economic and financial statistics, External sector statistics, Labor, Monetary base, Money, Public debt, Public financial management (PFM)
- Keywords: Africa, CR, disbursement of SDR, East Africa, EFF arrangement, External sector statistics, Global, government, inflation expectation, ISCR, looming inflation-depreciation spiral, Monetary base, SDR, Seychellois authorities