Contributing an estimated 83.7% of GDP in 2017, the services sector plays a significant role in the growth and development of the Seychelles economy, followed by industry and agriculture, contributing about 13.8% and 2.5% of GDP respectively. Trade in goods and services also plays an essential role in Seychelles economic growth – contributing 105.29% to GDP in 2017. Much of Seychelles’ export earnings are from canned tuna, frozen fish and re-export of petroleum products, and its major imports include machinery equipment, petroleum products, foodstuffs, chemicals and other manufactured goods.
The Seychelles economic performance has been reasonably pleasant over the past decade primarily driven by tourism and fisheries, which are expected to continue to be the key drivers of growth. Besides, the government embarked on fiscal discipline measures aimed at public expenditure efficiency to support economic growth. Growth is expected to increase slightly from 2.8% in 2017 up to 3.0% in 2019. On the other hand, inflation is likely to stabilise at 3 % for the next three years.
Seychelles’ major growth sector of tourism faces the external risk of vulnerability to developments in Europe, its major origin for tourists as well as from rising fuel prices. With a population of 0.094 million in 2017 that is expected to grow to 0.096 million in 2019, a GDP of US$1.482 billion in 2017, which is expected to increase to about US$1.659billion in 2019 and a GDP per capita income of US$15,685.96 in 2017, projected to rise to US$17,207.99 in 2019, Seychelles provides a growing market for exporters and investors.
The country also has a potential to export to neighbouring, SADC countries, COMESA, Africa and the UK. The country’s volume of imports of goods and services is expected to increase from about -1.71% in 2017 up to approximately 3.83% in 2019, and the amount of exports of goods and services is expected to grow from about 0.39% in 2017 up to approximately 5.38% in 2019, indicating expansion in trade.
There is potential for investment in construction, tourism, hotel and catering, and infrastructure development.