The International Monetary Fund has disbursed approximately $41 million to Seychelles, following the successful completion of the fifth and sixth reviews under the country's Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF) programmes. The IMF Executive Board decision validates the progress made by Victoria in implementing its economic reforms.
Growth slowing but reforms on track
The Seychellois economy is projected to grow at 1.5% in 2026, down from 5.1% in 2025, before rebounding to 4% in 2027. The slowdown is driven mainly by global uncertainties and their impact on tourism arrivals — the backbone of the archipelago's economy. The fiscal deficit is projected at 1.3% of GDP in 2026, after surpluses in prior years.
On the debt side, total government and government-guaranteed debt is estimated at 57.1% of GDP in 2026 (vs 53.6% in 2025), while external debt reaches 288.7% of GDP — a high ratio linked to the island's open and trade-dependent economy.
An ambitious structural reform agenda
The IMF programme covers several areas: tax revenue mobilisation, public debt management, financial sector supervision, foreign reserve strengthening, exchange rate flexibility, and — crucially — building climate change resilience. This last pillar is particularly strategic for an island state whose coastal infrastructure is directly threatened by rising sea levels.
Why it matters
The IMF's $41 million disbursement is a strong confidence signal to markets. For foreign investors active in Seychelles, this institutional endorsement reduces the risk premium and confirms that Victoria remains on the path of macroeconomic stability despite a challenging global environment.
Sources: IMF, Press Release No. 26/171, May 2026.