• $13.7 million disbursed under ECF and RSF agreements

• Funds to support macroeconomic stability and climate resilience

• Growth forecast cut to 3.2% amid tourism slowdown

The International Monetary Fund (IMF) has approved a disbursement of $13.7 million to Seychelles under the Extended Credit Facility (ECF) and the Resilience and Sustainability Facility (RSF). The announcement followed the fourth review of the three-year agreement endorsed by the IMF on May 31, 2023.

The disbursement aims to support macroeconomic stability, promote growth, and strengthen Seychelles’ fiscal and monetary policy frameworks. It will also help boost climate resilience, attract climate-related investments, and leverage other sources of official financing.

This brings total disbursements under the current program to $41.7 million through the ECF and $18.2 million via the RSF, out of a combined total package of $102 million. The program projects a 3.2% GDP growth rate for 2025.

The IMF noted that the Seychellois economy has softened relative to earlier expectations, due in part to weaker performance in the tourism sector. Inflation rose to 1.7% year-on-year in December 2024, reversing deflation of -2.7% in the same period the previous year. This shift was largely driven by higher public service costs and currency depreciation.

Despite these challenges, the IMF acknowledged the country’s progress. “Seychelles has continued to demonstrate sound macroeconomic management and commitment to structural reforms,” the statement said. It also noted that monetary policy remains supportive amid low inflation and that key macro-structural reforms are advancing satisfactorily.

For 2025, real GDP growth is expected at 3.2%, down from a prior estimate of 4.3%. Annual inflation is projected to ease to 1.2% by year-end.