National economy of Seychelles - industries, GDP and prosperity level

The economy of the Seychelles continues to develop rapidly after seceding from British citizenship. The basis of the republic’s economy is tourism and fisheries. It is worth noting that in many respects, the islands is industry leader of the fishing sector. For example, in the entire Indian Ocean it is in the Seychelles that they catch, process, and transport tuna in the largest quantity. A trade zone is functioning successfully in close proximity to the capital “Victoria” where a huge national port operates. The government offers mutually beneficial modalities of cooperation to foreign fishing companies. At the same time, the Seychelles remain the largest importer of not only tuna, but also shrimp in the European market. Also, one cannot but take into account that the amount of fish consumption per capita on the island is simply incredible; not less than sixty-five kilograms per year.

Tourism contributes about seventy percent to the total Gross Domestic Product. This sphere of activity continues to develop actively; new hotels and guesthouses are being built, the transportation infrastructure is improving, and there is quite a good program for attracting tourists. Every year, international studies show that the level of tourist service is getting better in the republic. The agrarian sector to date does not bring more than two percent profits to the economy of the country, although a few decades ago these islands were characterized as agrarian. Agricultural land occupies only about six thousand hectares of land. The local population grows mostly bananas, sweet potatoes, avocado, millet, tea, various vegetables, as well as cinnamon tree.

The main branch of the industry sector is processing and preserving tuna, conserving fruits and vegetables. There is a small production of boats, factories for the assembly of furniture and its production, as well as alcoholic and non-alcoholic beverages. It is worth noting that as of the year 2016, the amount of exports was approximately 401 billion dollars, while imports exceeded 500 billion dollars. The bulk of exports are fish and seafood in fresh, frozen and canned form, cinnamon and canned fruits. Seychelles maintains excellent export links with England, the United States, central European countries, Japan and Thailand. Copyright www.orangesmile.com

At the heart of the imported products lie food products, all oil products, various equipment, cars, tobacco and tobacco products, as well as products of the chemical and pharmaceutical line of activity. These products are purchased mainly in France, Saudi Arabia, Italy, Singapore and England. The land in the Seychelles is quite poor. There are practically no useful minerals here. Nevertheless, the search for oil is continuously being carried out. The amount of electricity produced by heating by heating stations of the republic is quite ample, but all the same, they have to purchase energy resources mainly from Saudi Arabia.

It is worth noting that a rather large percentage of Seychelles’ GDP is gotten thanks to their banks in which offer offshore schemes for moving money. More than twelve thousand international companies and organizations were registered with them last year. The country’s tax system implies two types of taxation at once: for private persons, and for individual operating companies and organizations. In general, the country’s economy is vulnerable to external factors, no matter what kind they are. The country depends on tourism, and if travelers stop visiting the islands, for example, because of the difficult economic situation in the world, the economy of the islands will collapse. The country also depends on the sale of seafood. And if trade relations break, this will also cause irreparable harm to the economy. Any recession in the leading spheres of activity is fraught with serious consequences.

GDP per capita is about 28 thousand dollars. The size of public debt per capita is about fifteen thousand dollars. Public debt in relation to the size of GDP is fifty three percent. The GDP growth rate according to 2016 statistics is 4.4%. The country’s GDP for 2016 was one million four hundred thousand dollars. Inflation even in this year fell a little reaching 4.8 percent. Unemployment rate is quite low; less than three percent. The local population is quite aware of the economic situation in the country, so it does not shy away from taxes and tries to make as much contribution to the development of its republic as possible. Also, the system of retirement pensions and social benefits is a good motivation for official employment.