Seychelles: First Reviews Under the Extended Arrangement Under the Extended Fund Facility and the Arrangement Under the Resilience and Sustainability Facility-Press Release; and Staff Report

The Seychellois economy continues to recover as tourist arrivals move closer to pre-pandemic levels. Inflation is on a downward trajectory due to decreased global food and fuel prices. The government’s primary fiscal position is expected to be near balance in 2023, stronger than expected at the outset of the EFF/RSF program. External balances have improved. The current account deficit is projected to decline to 5.4 percent of GDP in 2023 and foreign reserves to rise to an equivalent of 3.7 months of imports. The ratio of public and publicly guaranteed debt to GDP is expected to fall to about 64 percent of GDP by end-2023, compared to 81 percent in 2020. The authorities are advancing with reform measures agreed under the RSF.