Economy driven by tourism

In the last quarter of 2024, the Central Bank of Seychelles (CBS) announced that it would maintain its accommodative monetary policy while remaining vigilant to various factors that could impact the island nation’s economy.

This announcement was made on Tuesday by CBS Governor Caroline Abel during a press conference where she confirmed that the key monetary policy rate would remain at 1.75 %. According to Abel, this decision was based on an analysis of international changes that could affect Seychelles, as well as the evolution of the national financial system and economy.

In recent months, several central banks have opted to lower their interest rates due to a decrease in inflation. Globally, food and oil prices have been on the rise since the beginning of the year, largely due to production cuts by the Organization of the Petroleum Exporting Countries and other partner nations (OPEC+).

Locally, Seychelles’ economy continues to be bolstered by tourism, though by September 15th, the country had welcomed a total of 241,344 visitors, reflecting a slight decline of 0.08 % compared to the same period in 2023. Visitor numbers have been increasing at a slower rate than earlier in the year, mainly due to reduced arrivals from key markets such as France, the UK, Italy, and Russia. In the fourth quarter, tourism arrivals are expected to increase with improved air connectivity. However, tourism rates may remain low due to rising competition from other regions.