Seychelles' 2016 growth seen at 4.5%

November 2, 2016 7:09 AM

"The growth outlook for 2017 remains positive, buoyed by foreign direct investment related projects in the tourism sector," it said

A photographer takes pictures through a glass carrying the International Monetary Fund (IMF) logo during a news conference in Bucharest , file.

The International Monetary Fund (IMF) expects Seychelles' economy to grow 4.5 percent this year and said its growth outlook for 2017 is "positive", helped by inflows of foreign investment in the tourism sector.

The Indian Ocean country of 93,000 people relies on tourism for government revenues but has recently sought to promote itself as a low-tax, financial services hub.

In a statement on Tuesday, the IMF said its 2016 growth projection was based on "vibrant tourist arrivals and expanding credit to the private sector."

"The growth outlook for 2017 remains positive, buoyed by foreign direct investment related projects in the tourism sector," it said.

However, weaker-than-expected global growth momentum could cut tourism receipts and pose a risk to the country's growth outlook, the IMF said.