Seychelles GDP Sees First Contraction Since 2023

2026-07-02 10:42 By Luisa Carvalho 1 min. read

The economy of Seychelles shrank by 0.1% year-on-year in Q1 2026, following an upwardly revised 9.4% growth in the previous period.

This was the first contraction since Q3 2023, driven by tourism-related activities, particularly accommodation and food services (-9.8% vs 8.9%) and arts, entertainment and recreation (-14.0% vs 14.6%).

The tourism sector, which remains the backbone of the economy, has faced increasing pressure from geopolitical disruptions and rising travel costs.

The downturn follows warnings from the International Monetary Fund that weaker tourism demand and travel disruptions linked to the Middle East could significantly impact the country's economy.

Around 60% of tourists to Seychelles transit through Doha, Dubai or Abu Dhabi, exposing the country to disruptions at major Gulf airports.

It also imports about 95% of its energy and much of its food, increasing its exposure to higher shipping and transport costs.

On a quarter-on-quarter basis, GDP fell 4.1%.



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Seychelles GDP Sees First Contraction Since 2023
The economy of Seychelles shrank by 0.1% year-on-year in Q1 2026, following an upwardly revised 9.4% growth in the previous period. This was the first contraction since Q3 2023, driven by tourism-related activities, particularly accommodation and food services (-9.8% vs 8.9%) and arts, entertainment and recreation (-14.0% vs 14.6%). The tourism sector, which remains the backbone of the economy, has faced increasing pressure from geopolitical disruptions and rising travel costs. The downturn follows warnings from the International Monetary Fund that weaker tourism demand and travel disruptions linked to the Middle East could significantly impact the country's economy. Around 60% of tourists to Seychelles transit through Doha, Dubai or Abu Dhabi, exposing the country to disruptions at major Gulf airports. It also imports about 95% of its energy and much of its food, increasing its exposure to higher shipping and transport costs. On a quarter-on-quarter basis, GDP fell 4.1%.
2026-07-02
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