With economic growth at 4½ percent, reflecting increased tourist arrivals, stronger output in the fishing industry, and expanding credit to the private sector, the IMF Executive Board says the growth outlook for 2017 remains positive.
Seychelles president, Danny Faure, chaired a meeting of the cabinet on Wed, 14 June 2017 to discus a number of policies, among them the approval by the cabinet for amendments to the NDEA Act and the Anti-Money Laundering Act to strengthen the power of the Auditor General to conduct financial audits in those institutions and to report on the audits in accordance with the law.
The cabinet also approved for the Ministry of Finance, Trade and Economic Planning to engage in consultations with relevant bodies on the proposed framework for financial autonomy for independent institutions.
These actions by the president are being lauded in the country as the economic outlook continue to show positive signs.
The Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation with Seychelles on June 2, 2017, noted that the country’s positive outlook is being helped by low commodity prices and a stable exchange rate.
“With continued foreign investments and rising arrivals in the tourism sector, the growth outlook for 2017 remains positive,” the Board stated, bu however noted that rising trend in international fuel prices since late 2016, along with fiscal measures in the 2017 budget, could put pressure on inflation and on the balance of payments.
“International reserves are expected to remain at an adequate level, anchored by strong macroeconomic policies. Downside risks to the outlook stem largely from the external sector.”
While commending the authorities for making considerable progress toward macroeconomic stability under successive Fund‑supported programs, the Board also stated that the economy remains vulnerable to internal and external risks, including in the long run to climate change.
The directors called for continued commitment to prudent policies and structural reforms to safeguard the gains thus far and promote sustainable and inclusive growth. In this regard, they noted the authorities’ intention for continued engagement with the Fund.