2015 Index of Economic Freedom

Seychelles

overall score57.5
world rank114
Rule of Law

Property Rights50.0

Freedom From Corruption54.0

Limited Government

Government Spending59.4

Fiscal Freedom79.8

Regulatory Efficiency

Business Freedom67.7

Labor Freedom63.9

Monetary Freedom76.0

Open Markets

Trade Freedom44.0

Investment Freedom50.0

Financial Freedom30.0

Embed This Data

Create a Comparison Chart

See how Seychelles compares to another country using any of the measures in the Index.

vs
Close
Download PDF
Quick Facts
  • Population:
    • 0.1 million
  • GDP (PPP):
    • $2.5 billion
    • 3.6% growth
    • 3.8% 5-year compound annual growth
    • $26,492 per capita
  • Unemployment:
  • Inflation (CPI):
    • 4.3%
  • FDI Inflow:
    • $177.6 million
Embed This Data

Seychelles’ economic freedom score is 57.5, making its economy the 114th freest in the 2015 Index. Its score has increased by 1.3 points since last year, with declines in labor freedom and the management of government spending outweighed by considerable improvements in trade freedom and freedom from corruption that have enabled the island economy to achieve its highest economic freedom score ever. Seychelles is ranked 20th among 46 countries in the Sub-Saharan Africa region.

Seychelles has posted the fourth best record for advancing economic freedom over the past half-decade. Since 2011, Seychelles has increased its economic freedom score by 6.1 points, with scores advancing in eight of the 10 economic freedoms. Most impressively, economic freedom has not declined in any of the factors. Led by monetary stabilization and robust trade reforms, Seychelles has propelled itself to the upper tier of the “mostly unfree” category.

Seychelles’ recent reform success has helped to improve a weak and uncompetitive economic framework. Despite recent improvements in government accounts, however, Seychelles was forced to accept an IMF loan in 2011 to handle its overall debt and spending levels, and the economy remains one of the most closed in the world, reducing competition and holding back investment. A restrictive business environment and strict labor regulations limit business formation and formal employment.

Close

Background

The People’s Progressive Front has ruled Seychelles since 1977, when France Albert René seized power in a bloodless coup. In 2004, René ceded power to Vice President James Michel. Michel was elected to a third five-year term in May 2011. Seychelles enjoys a relatively stable economic environment as a high-middle-income country with a lucrative fishing and tourism industry. Piracy remains a significant threat off the coast of Seychelles. In early 2013, tropical cyclone Felleng brought torrential rain, flooding, and landslides that destroyed hundreds of houses.

Rule of LawView Methodology

Property Rights 50.0 Create a Graph using this measurement

Freedom From Corruption 54.0 Create a Graph using this measurement

Corruption and extensive drug trafficking and money-laundering continue to plague the archipelago. Concerns over government corruption have focused on a lack of transparency in the privatization and allocation of government-owned land as well as dysfunction in government finances, illegal procedures, and embezzlement. Judges generally decide cases fairly but face interference in high-level economic and political cases.

Limited GovernmentView Methodology

The top individual income tax rate is 15 percent, and the top corporate tax rate is 33 percent. Other taxes include a vehicle tax, a tax on interest, and a new value-added tax. Overall tax revenues equal 26.6 percent of domestic income, and government expenditures amount to 36.8 of percent domestic production. Public debt is equivalent to 62 percent of GDP.

Regulatory EfficiencyView Methodology

The requirements for incorporating a business have been simplified, but regulatory inefficiency and lack of transparency still hamper the regulatory environment. The labor market remains inefficient, and the public sector is the main source of employment. Inflation stabilized at a low level in 2013, aided by exchange rate strength, and the state rebalanced utility prices to cut implicit subsidies.

Open MarketsView Methodology

The average tariff rate was 28.3 percent as of 2007. Reliance on tariff revenues has declined but remains relatively high. Foreign investors can repatriate profits. Foreign investment in many sectors is restricted. The financial sector, dominated by banks, offers offshore services. The government owns two of the largest banks. The capital market is evolving, and there is a stock exchange.

Country's Score Over Time

Bar Graph of Seychelles Economic Freedom Scores Over a Time Period

Country Comparisons

Bar Graphs comparing Seychelles to other economic country groups Download Charts

Regional Ranking

rank country overall change
1Mauritius76.4-0.1
2Botswana69.8-2.2
3Cabo Verde66.40.3
4Rwanda64.80.1
5Ghana63-1.2
6South Africa62.60.1
7Madagascar61.70.0
8Swaziland59.9-1.3
9Uganda59.7-0.2
10Namibia59.60.2
11Benin58.81.7
12Zambia58.7-1.7
13Burkina Faso58.6-0.3
14Côte d'Ivoire 58.50.8
15Gabon58.30.5
16Senegal57.82.4
17Tanzania57.5-0.3
18Djibouti57.51.6
19The Gambia57.5-2.0
20Seychelles57.51.3
21Mali56.40.9
22Nigeria55.61.3
23Kenya55.6-1.5
24Mozambique 54.8-0.2
25Malawi54.8-0.6
26Niger54.6-0.5
27Burundi53.72.3
28Mauritania53.30.1
29São Tomé and Príncipe 53.34.5
30Togo533.1
31Liberia52.70.3
32Comoros52.10.7
33Guinea52.1-1.4
34Guinea-Bissau520.7
35Cameroon51.9-0.7
36Sierra Leone51.71.2
37Ethiopia51.51.5
38Lesotho49.60.1
39Angola47.90.2
40Chad45.91.4
41Central African Republic45.9-0.8
42Democratic Republic of Congo454.4
43Republic of Congo 42.7-1.0
44Equatorial Guinea40.4-4.0
45Eritrea38.90.4
46Zimbabwe37.62.1
See Entire Region List ›

View all countries ›

Back to Top