Since independence in 1976, per capita output in this Indian Ocean archipelago has expanded to roughly seven times the pre-independence, near-subsistence level, moving the island into the upper-middle income group of countries. Growth has been led by the tourist sector, which employs about 30% of the labor force and provides more than 70% of hard currency earnings, and by tuna fishing. In recent years, the government has encouraged foreign investment to upgrade hotels and other services. At the same time, the government has moved to reduce the dependence on tourism by promoting the development of farming, fishing, and small-scale manufacturing. The Seychelles rupee was allowed to depreciate in 2006 after being overvalued for years and fell by 10% in the first 9 months of 2007. Despite these actions, the Seychelles economy struggled to maintain its gains and in 2008 suffered from food and oil price shocks, a foreign exchange shortage, high inflation, large financing gaps, and the global recession. In July 2008 the government defaulted on a Euro amortizing note worth roughly US$80 million, leading to a downgrading of Seychelles credit rating. In an effort to obtain loans to service its debt, Seychelles in November 2008 signed a standby arrangement with the IMF that mandated floating the exchange rate, removing foreign exchange controls, cutting government spending, and tightening monetary policy. In response to Seychelles' successful implementation of these policies, the IMF upgraded Seychelles to a three-year extended fund facility (EFF) of $31 million in December 2009. In 2008, GDP fell more than 1% due to declining tourism and the initial effects of liberalization, but the economy recovered in 2010-11 after the reforms took hold and tourism increased. Seychelles is attempting to implement further structural reforms, including overhauling the tax system, reorganizing of state enterprises, and deregulating the finance and communications sectors.

12.703% (31 December 2010 est.)

$461.3 million (31 December 2011 est.)

$319.9 million (31 December 2010 est.)

$553.4 million (31 December 2011 est.)

$458.3 million (31 December 2010 est.)

$556 million (31 December 2011 est.)

$478 million (31 December 2010 est.)

Coconuts, cinnamon, vanilla, sweet potatoes, cassava (tapioca), copra, bananas; poultry; tuna

Fishing, tourism, processing of coconuts and vanilla, coir (coconut fiber) rope, boat building, printing, furniture; beverages

Canned tuna, frozen fish, cinnamon bark, copra, petroleum products (reexports)

France 25.7%, UK 20.4%, Japan 10.6%, Italy 9.7% (2011)

Machinery and equipment, foodstuffs, petroleum products, chemicals, other manufactured goods

Saudi Arabia 23.1%, South Africa 8.1%, Spain 8%, France 5.6% (2011)

$255.4 million (31 December 2011 est.)

$235.6 million (31 December 2010 est.)

$1.47 billion (31 December 2011 est.)

$1.51 billion (31 December 2010 est.)

Seychelles rupees (SCR) per US dollar -