Seychelles : economy statistics and industry reports

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.

GDP grew about 7-8% per year in 2006-07, driven by tourism and a boom in tourism-related construction.

The Seychelles rupee was allowed to depreciate in 2006 after being overvalued for years and fell by 10% in the first 9 months of 2007.

Despite these actions, the Seychelles economy has struggled to maintain its gains and in 2008 suffered from food and oil price shocks, a foreign exchange shortage, high inflation, large financing gaps, and the global recession.

In July 2008 the government defaulted on a Euro amortizing note worth roughly US$80 million, leading to a downgrading of Seychelles credit rating, but in October 2010 the EU approved a $2.

9 million grant as part of a larger four-year program for Seychelles.

In response to Seychelles successful implementation of tighter monetary and fiscal policies, the IMF upgraded Seychelles to a three-year exteneded fund facility (EFF) of $31 million in December 2009.

In 2008, GDP fell more than 1% due to declining tourism, but the economy recovered in 2009-10 with a notable increase in tourist numbers for 2010.