Seychelles: 2026 Article IV Consultation, Fifth and Sixth Reviews Under the Arrangement Under the Extended Fund Facility and the Arrangement Under the Resilience and Sustainability Facility, and Request for a Waiver for Nonobservance of a Performance Criterion-Press Release; Staff Report; and Statement by the Executive Director for Seychelles

Seychelles’ economic performance has been strong. Real GDP growth for 2025 is estimated at 5.1 percent, driven by record tourist arrivals. Headline inflation (CPI) was just below zero at end-year. The fiscal outturn was tighter than targeted at a primary surplus of 2.5 percent of GDP, while the ratio of public and publicly guaranteed debt to GDP declined to 53.6 percent. The external current account deficit dropped to 6.5 percent of GDP, and foreign exchange reserves rose to over 4 months of import cover. However, the Middle East war poses significant challenges for Seychelles. About 60 percent of tourist arrivals in Seychelles come through Doha, Dubai, or Abu Dhabi. Seychelles also imports about 95 percent of its energy, much of its food, and most if its industrial inputs—prices for which are now rising either directly or through higher freight and shipping costs.