- The war in the Middle East has negatively affected tourist arrivals and growth in the short run, but a nascent recovery appears to be underway.
- Inflation has remained low due to limited pass-through of international prices, but with negative impact on the balance sheets of key state enterprises.
- Seychelles' 2026 Post-Financing Assessment is expected to be discussed at the IMF Executive Board in December 2026.
Victoria, Seychelles: An IMF staff team led by Todd Schneider visited Victoria from September 21-30 to conduct Seychelles' Post-Financing Assessment ( PFA ). [1]
At the end of the mission, Mr. Schneider issued the following statement:
"The effects of the Middle East conflict have been visible in a reduction in tourist arrivals, particularly during March-June. Subsequent months have seen a nascent recovery in arrivals, but real GDP growth for 2026 is projected at 1 percent compared with 5.8 percent in 2025.
Headline inflation remained moderate at 0.9 percent through August, reflecting a subsidy through state owned enterprises (SOEs) to limit the pass-through of rising international commodity prices to domestic markets. The cost of these subsidies has deteriorated some SOE balance sheets and reduced dividend payments to the government budget.
The external sector has remained broadly stable despite the recent shock. The rupee has been broadly stable vis-à-vis the U.S. dollar, and central bank foreign exchange reserves remain at about 4 months of import cover. Stress on the financial sector also appears to have been limited.
The IMF team thanks the authorities for their constructive and open discussions. Seychelles' 2026 PFA is expected to be discussed at the IMF Executive Board in December 2026."
[1] A Post-Financing Assessment (PFA) is expected for countries with outstanding IMF credit above the absolute or quota-based thresholds that do not have an IMF-supported program or a staff-monitored program. It reports on the members' policies, the consistency of the macroeconomic framework with the objective of medium-term viability, and the implications for the member's capacity to repay the Fund.
