A Seychelles IMF staff-level agreement has been reached after an International Monetary Fund team visited Victoria from 4 to 19 March 2026.
The talks covered the final reviews of two IMF arrangements (Extended Fund Facility and Resilience and Sustainability Facility) and the country’s economic outlook. A final decision by the IMF Executive Board is expected in May 2026.
The IMF said Seychelles’ economy is expected to slow in 2026. Growth is projected at about 1.5%.
It said rising global prices for oil and food, along with higher shipping costs, are expected to push inflation to 2.6%.
The IMF also said lower tourism income and higher import costs could increase the country’s deficit and reduce foreign exchange reserves. It added that government revenue is likely to fall while the fiscal deficit may increase.
The IMF said these forecasts remain uncertain due to changes in the global situation.
IMF Mission Chief Todd Schneider confirmed that an agreement had been reached. “We are pleased to announce that IMF staff and Seychellois authorities have reached a staff-level agreement on policies to complete the final reviews,” he said.
He said Seychelles could receive up to $45 million, if reforms are completed and approved. This would bring total IMF support to about $105.1 million since May 2023.
The IMF said the economy performed strongly in 2025. Growth reached 5.1%, helped by high tourist arrivals. Inflation remained just below zero.It said the government recorded a primary surplus of 2.5% of GDP, which helped reduce public debt to 53.6% of GDP.
Tourism earnings also helped reduce the current account deficit to 6.5% of GDP and increased foreign reserves to just over four months of import cover.
The IMF said most programme targets were met, but two reforms will take more time. One involves setting up systems for banks to buy government securities. Another involves reviews of key government ministries, now expected by the end of 2026.
It said progress has also been made on climate-related reforms, although some work is still pending.
The IMF said the government should prepare measures to deal with possible economic changes. It said support should focus on vulnerable groups and remain temporary.
It added that exchange rate flexibility and further reforms will be important for the economy.
Mr Schneider said the IMF will continue to support Seychelles. “The IMF remains committed to supporting Seychelles in maintaining macroeconomic stability in the face of new shocks,” he said.