INTERNATIONAL MONETARY FUND DISCUSSES SEYCHELLES’ ECONOMIC HEALTH WITH MEMBERS OF PARLIAMENT
A four-member delegation from the International Monetary Fund headed by Mr. Marshal Mills met with Members of the National Assembly last Friday to present the outcome of their analysis of Seychelles’ economic performance.
Mr. Mills explained that there was a very strong increase in domestic demand underpinned by strong growth in personal income amounting to 13%. While macroeconomic stability prevailed, with low percentages of inflation, Mr. Mills explained that it is very challenging to sustain an increase in income without experiencing pressures on a small, open economy. Another ramification was strong growth in credit allocated to the private sector.
The delegation concluded that the tightening of monetary policy and fiscal discipline were the sine qua non to restoring equilibrium to the economy. They also gave fair warning in regard to parastatals overstepping the mark and stifling private sector development.