Editing Economy of Seychelles (section)

===Economic growth===
Growth slowed in 1998–2001, due to sluggish tourist and tuna sectors. Also, tight controls on exchange rates and the scarcity of foreign exchange have impaired short-term economic prospects. The [[black market]] value of the [[Seychellois rupee]] is anywhere from two thirds to one half the official exchange rate.{{Citation needed|reason=how much of this is outdated? Note no 2008 data in next sentence, too.|date=July 2009}} The next few years were also slow due to the worldwide economic downturn and the fear of flying brought on by the terrorism on 11 September 2001.

More recently though, tourism has roared back at a record pace setting successive records in 2006 and again in 2007 for number of visitors.{{cn|date=January 2025}} The increased availability of flights to and from the archipelago due in part to new entrants [[Emirates (airline)|Emirates]] and [[Qatar Airways|Qatar]] airlines is also beginning to show.  Both at official exchange rates and at [[purchasing power parity]] (PPP), [[Seychelles]] remains the richest territory in Africa in terms of [[GDP per capita]] (US$9,440.095 at real exchange rates and US$17,560.062 at PPP 2008 estimate),<ref name=GDP>{{cite web |url=http://siteresources.worldbank.org/ICPINT/Resources/ICPreportprelim.pdf |title=2005 International Comparison Program |author=World Bank |access-date=2008-04-07 |author-link=World Bank}}</ref>

Because of economic contraction (the economy declined by about 2% in 2004 and 2005 and lost another 1.4% in 2006 according to the [[International Monetary Fund]]) the country was moving downwards in terms of per capita income.  However, the economy bounced back in 2007, growing by 5.3% due in part to record tourism numbers and the booming building and offshore industries. The IMF forecast further growth in 2008 with continuing increase in the GDP per capita.<ref>{{cite web|url=http://www.imf.org/external/pubs/ft/weo/2008/02/weodata/weorept.aspx?pr.x=54&pr.y=9&sy=2004&ey=2008&scsm=1&ssd=1&sort=country&ds=.&br=1&c=718&s=NGDPD%2CNGDPDPC%2CPPPGDP%2CPPPPC%2CLP&grp=0&a=#cs5|title=Report for Selected Countries and Subjects|access-date=11 June 2015}}</ref>

In October 2008, as tourism and fishing revenue began slowing, the Seychelles defaulted on a $230 million debt. The [[International Monetary Fund]] stepped with a two-year, $26 million rescue package. The rescue package came with a few stipulations; The country laid off 1,800 government workers, floated its currency, lifted [[foreign exchange controls]] and sold off state assets.<ref>Prasso, Sheridan. [https://money.cnn.com/2009/03/25/magazines/fortune/seychelles_bankrupt.fortune/index.htm?postversion=2009032515 "Paradise goes bankrupt"]. ''[[Fortune (magazine)|Fortune]]'', 25 March 2009. Accessed 19 May 2010.</ref> At the time, the country's $800 million external foreign debt was equivalent to almost 175 percent of its [[gross domestic product]].<ref>[http://siteresources.worldbank.org/INTDAILYPROSPECTS/Resources/1324037-1124814739660/DECPGDaily_110308.pdf "Daily Brief Economics and Financial Market Commentary"]. Global Economic Monitor, 3 November 2008. Accessed 19 May 2010.</ref>

The decision to let the currency trade freely as part of the IMF rescue package means that Seychelles is the smallest country in the world that has a completely independent currency - one that is neither [[Fixed exchange rate|pegged]], nor an [[dollarization|adopted]] foreign currency, nor a common currency used within a larger [[monetary union]].  When the Seychellois rupee became freely floated on 3 November 2008, its value quickly fell drastically, decreasing from eight per U.S. dollar to 16, effectively doubled the prices of imports.<ref>Theunissen, Garth. [https://www.bloomberg.com/apps/news?pid=20601116&refer=africa&sid=azdGid.AnZaw "Seychelles Rupee Plunges After Central Bank Drops Currency Peg"]. Bloomberg, 3 November 2008. Accessed 19 May 2010.</ref>

The global recession and [[Piracy in Somalia|piracy in the Indian Ocean]] hit Seychelles hard in 2009, with the GDP projected to contract by 7.5 percent. However the government exceeded its fiscal targets, with a primary surplus of 13.4% of GDP in the first nine months of 2009 according to the IMF. They report expenditure has been tightly controlled and revenue has held up well despite the difficult economic environment.<ref>[http://www.imf.org/external/np/sec/pr/2009/pr09472.htm IMF Executive Board Approves US$31.1 Million Extended Fund Facility Arrangement for Seychelles, Completes Final Review Under Stand-By Arrangement]. IMF Press Release, 22 December 2009. Accessed 19 May 2010.</ref>

In May 2010 an International Monetary Fund mission visited Seychelles and concluded the country is making progress. The head of the mission, Mr. Jean Le Dem, said at the conclusion of the visit:<ref>[http://www.imf.org/external/np/sec/pr/2010/pr10202.htm IMF Mission Finds Seychelles’ New Three-Year Economic Program on Track] IMF Press Release, 10 May 2010. Accessed 19 May 2010.</ref><blockquote>
The economy is recovering from a recession that put real gross domestic product (GDP) to almost a stand in 2009. Real GDP is projected to grow at 4 percent in 2010, reflecting primarily a rebound in tourism earnings. Twelve-month inflation, which was negative during the past few months, is expected to return to about 1 percent by year-end
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In 2017 the Seychelles joined the World Trade Organisation, facilitated by Omani economist [[Hilda al-Hinai]], who chaired the Working Group.<ref>{{Cite web|title=WTO team at State House|url=http://www.statehouse.gov.sc/news/1389/wto-team-at-state-house|access-date=2020-10-23|website=www.statehouse.gov.sc|language=en}}</ref>