Seychelles: Selected Issues

July 26, 2022

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Format: Chicago

Seychelles: Selected Issues, (USA: International Monetary Fund, 2022) accessed December 22, 2024

Summary

This Selected Issues paper considers the containment and closure policies implemented in Seychelles—a Small Island Developing State (SID) highly dependent on tourism—and the resultant impact on Gross Domestic Product (GDP) in 2020–21. The assessment compares the economic performance of Seychelles against a set of other SIDS also dependent on tourism. The study adopts two econometric methods. The first method constructs a reference country to allow comparison against Seychelles, while the second method is a panel data regression. The analysis indicates that containment and closure policies contribute to a stronger GDP decline, as would be the case without such policies. In the following sections, the paper first explores how coronavirus disease 2019 evolved in Seychelles and describes the authorities' key responses. Secondly, we review the economic indicators of Seychelles. Thirdly, the methodology and the results are explained, followed by some conclusions. The authorities need to be mindful that containment and closure policies adversely impact economic activity should they be implemented again for a prolonged period—both within and across countries.

Subject: Balance of payments, Economic sectors, Health, International organization, Monetary policy

Keywords: Containment policy, COVID-19, Current account deficits, Evolution of goods, Global, I. empirical assessment, IMF staff calculation, Seychelles stringency index, Tourism, Western Europe

Publication Details

Pages:

17
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2022/250
Stock No:

1SYCEA2022004
ISBN:

9798400218316
ISSN:

1934-7685

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