On 21 October 2022, Fitch Ratings - award-winning credit rating agency - has upgraded Seychelles’ Long-Term Foreign-Currency Issuer Default Rating (LTFC IDR) to ‘BB-’from ‘B+’ with a stable outlook.

This upgrade is attributed to multiple factors conducive to steadfast and sustainable economic growth, such as, amongst others, declining debt levels and a recovering tourism industry. Driven primarily by the latter as well as strong exports levels, Fitch further forecasts real GDP at 6.6% in 2022 and on average 3.7% in 2023-2024 (2021: 10.6%).

Tourist arrivals having already reached 87% of corresponding 2019 levels in January-August 2022, and with this sector being the largest contributor to VAT receipts, Seychelles is set to experience stable fiscal performance through increased tax revenues.

Read the full commentary from Fitch Ratings here