Government consumption absorbs over one-third of Seychelles's GDP. == Economic history == The French originally settled the Seychelles in 1770, setting up plantations which relied heavily on slave labour to produce cotton, sugar, rice, and maize.
In the 1960s, about 33% of the working population worked at plantations, but by 2006 it was less than 3%. While the tourism and industrial fishing industries were on a roll in the late 1990s, the traditional plantation economy atrophied.
There were no exports of copra in 1996; 318 tons of cinnamon bark was exported in 1996, reflecting a decrease of 35% in cinnamon bark exports from 1995. The US military Indian Ocean Tracking Station on Mahé operated from 1963 until 1996. == Current economy == Since Seychelles' independence in 1976, per capita output has expanded to roughly seven times the old near-subsistence level.
There were no exports of copra in 1996; 318 tons of cinnamon bark was exported in 1996, reflecting a decrease of 35% in cinnamon bark exports from 1995. The US military Indian Ocean Tracking Station on Mahé operated from 1963 until 1996. == Current economy == Since Seychelles' independence in 1976, per capita output has expanded to roughly seven times the old near-subsistence level.
In the 1960s, about 33% of the working population worked at plantations, but by 2006 it was less than 3%. While the tourism and industrial fishing industries were on a roll in the late 1990s, the traditional plantation economy atrophied.
Cinnamon barks and copra—traditional export crops—dwindled to negligible amounts by 1991.
The vulnerability of the tourist sector was illustrated by the sharp drop in 1991-92 due largely to the Gulf War.
There were no exports of copra in 1996; 318 tons of cinnamon bark was exported in 1996, reflecting a decrease of 35% in cinnamon bark exports from 1995. The US military Indian Ocean Tracking Station on Mahé operated from 1963 until 1996. == Current economy == Since Seychelles' independence in 1976, per capita output has expanded to roughly seven times the old near-subsistence level.
Earnings are growing annually from licensing fees paid by foreign trawlers fishing in Seychelles' territorial waters. In 1995, Seychelles saw the privatization of the Seychelles Tuna Canning Factory, 60% of which was purchased by the American food company Heinz.
The most recent wildcat by Enterprise Oil in 1995 detected gas but failed to find hydrocarbons. Several oil and gas exploration companies are active in the Seychelles offshore.
There were no exports of copra in 1996; 318 tons of cinnamon bark was exported in 1996, reflecting a decrease of 35% in cinnamon bark exports from 1995. The US military Indian Ocean Tracking Station on Mahé operated from 1963 until 1996. == Current economy == Since Seychelles' independence in 1976, per capita output has expanded to roughly seven times the old near-subsistence level.
Any decline in tourism quickly translates into a fall in GDP, a decline in foreign exchange receipts, and budgetary difficulties. ===Economic growth=== Growth slowed in 1998–2001, due to sluggish tourist and tuna sectors.
Tourism earned $631 million in 1999-2000.
About 130,046 tourists visited Seychelles in 2000, 80.1% of them from Europe (United Kingdom, Italy, France, Germany, and Switzerland). In 2000, industrial fishing surpassed tourism as the most important foreign exchange earner.
The next few years were also slow due to the worldwide economic downturn and the fear of flying brought on by the terrorism on September 11, 2001. More recently though, tourism has roared back at a record pace setting successive records in 2006 and again in 2007 for number of visitors.
Both at official exchange rates and at purchasing power parity (PPP), Seychelles remains the richest territory in Africa in terms of GDP per capita (US$9,440.095 at real exchange rates and US$17,560.062 at PPP 2008 estimate), Because of economic contraction (the economy declined by about 2% in 2004 and 2005 and lost another 1.4% in 2006 according to the International Monetary Fund) the country was moving downwards in terms of per capita income.
Both at official exchange rates and at purchasing power parity (PPP), Seychelles remains the richest territory in Africa in terms of GDP per capita (US$9,440.095 at real exchange rates and US$17,560.062 at PPP 2008 estimate), Because of economic contraction (the economy declined by about 2% in 2004 and 2005 and lost another 1.4% in 2006 according to the International Monetary Fund) the country was moving downwards in terms of per capita income.
In the 1960s, about 33% of the working population worked at plantations, but by 2006 it was less than 3%. While the tourism and industrial fishing industries were on a roll in the late 1990s, the traditional plantation economy atrophied.
The next few years were also slow due to the worldwide economic downturn and the fear of flying brought on by the terrorism on September 11, 2001. More recently though, tourism has roared back at a record pace setting successive records in 2006 and again in 2007 for number of visitors.
Both at official exchange rates and at purchasing power parity (PPP), Seychelles remains the richest territory in Africa in terms of GDP per capita (US$9,440.095 at real exchange rates and US$17,560.062 at PPP 2008 estimate), Because of economic contraction (the economy declined by about 2% in 2004 and 2005 and lost another 1.4% in 2006 according to the International Monetary Fund) the country was moving downwards in terms of per capita income.
The next few years were also slow due to the worldwide economic downturn and the fear of flying brought on by the terrorism on September 11, 2001. More recently though, tourism has roared back at a record pace setting successive records in 2006 and again in 2007 for number of visitors.
However, the economy bounced back in 2007, growing by 5.3% due in part to record tourism numbers and the booming building and offshore industries.
The recent passage of a revised Mutual Fund Act 2007, Securities Act 2007 and Insurance Act 2007 are meant to be the catalysts to move Seychelles from just another offshore jurisdiction to a full-fledged Offshore Financial Center (OFC). The Ministry of Finance is responsible for economic decisions and budgetary policy.
These include East African Exploration (EAX) (a subsidiary of Afren), Avana Petroleum (a subsidiary of Vanoil Energy) and WHL Energy. Beginning at the turn of the millennium the Seychelles Petroleum Company (SEPEC) started to develop the first fleet of modern petroleum double-hull tankers, with five vessels, which was completed by late 2007/early 2008 with the possibility to build more in the near future.
Both at official exchange rates and at purchasing power parity (PPP), Seychelles remains the richest territory in Africa in terms of GDP per capita (US$9,440.095 at real exchange rates and US$17,560.062 at PPP 2008 estimate), Because of economic contraction (the economy declined by about 2% in 2004 and 2005 and lost another 1.4% in 2006 according to the International Monetary Fund) the country was moving downwards in terms of per capita income.
The IMF forecast further growth in 2008 with continuing increase in the GDP per capita. In October 2008, as tourism and fishing revenue began slowing, the Seychelles defaulted on a $230 million debt.
When the Seychellois rupee became freely floated on November 3, 2008, its value quickly fell drastically, decreasing from eight per U.S.
These include East African Exploration (EAX) (a subsidiary of Afren), Avana Petroleum (a subsidiary of Vanoil Energy) and WHL Energy. Beginning at the turn of the millennium the Seychelles Petroleum Company (SEPEC) started to develop the first fleet of modern petroleum double-hull tankers, with five vessels, which was completed by late 2007/early 2008 with the possibility to build more in the near future.
Overall, this has sparked a recovery in port services following a drastic fall in 2009. === Manufacturing === Many of the other industrial activities are limited to small scale manufacturing, particularly agro-processing and import substitution.
dollar to 16, effectively doubled the prices of imports. The global recession and piracy in the Indian Ocean hit Seychelles hard in 2009, with the GDP projected to contract by 7.5 percent.
However the government exceeded its fiscal targets, with a primary surplus of 13.4% of GDP in the first nine months of 2009 according to the IMF.
Jean Le Dem, said at the conclusion of the visit: The economy is recovering from a recession that put real gross domestic product (GDP) to almost a stand in 2009.
They report expenditure has been tightly controlled and revenue has held up well despite the difficult economic environment. In May 2010 an International Monetary Fund mission visited Seychelles and concluded the country is making progress.
Real GDP is projected to grow at 4 percent in 2010, reflecting primarily a rebound in tourism earnings.
Twelve-month inflation, which was negative during the past few months, is expected to return to about 1 percent by year-end In 2017 the Seychelles joined the World Trade Organisation, facilitated by Omani economist Hilda al-Hinai, who chaired the Working Group. ===Financial Services=== In addition to the now booming tourism and building/real estate markets, Seychelles has renewed its commitment to developing its financial services sector.
Government officials and industry participants believe this could overtake the tourism industry as the chief pillar of the economy by 2017.
Much of the state holdings in the agricultural sector have been privatized, while the role of the government has been reduced to conducting research and providing infrastructure. In 2020, the Corruption Perception Index from Transparency International assessed Seychelles as the least corrupt country in Africa. ===Tourism and fishing=== Tourism is one of the most important sectors of the economy, accounting for approximately 16.6% (2000) of GDP.
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