Economic Transformation Strategy
CHAPTER 1 / INTRODUCTION
A resilient macroeconomic framework provides the foundation for productivity, participation, and performance. Past
cycles and fluctuations in economic activity have resulted in part from the lack of a consistent institutional framework
for macroeconomic management. Since 2009, Seychelles has made significant progress in building such an institu-
tional framework.
A system of continuous monitoring and evaluation, including involving the population as active participants, is need-
ed to guide analysis and policy. This is particularly necessary as Seychelles continues to base its prosperity on its
environmental endowments, especially when it comes to marine resources, which are under extreme stress globally.
In addition, more information is needed regarding Seychelles' additional factors of production. An integrated view
of labour allocation, migration, and skills development can help meet the challenges of sustaining rapid productivity
growth and avoiding bottlenecks due to skills shortages, while ensuring that Seychellois participate directly in emerg-
ing opportunities.
Education, employment and healthcare
Productivity, participation and performance are the major challenges for Seychelles. The challenges of providing a
solid education for all, strengthening skills, reforming the social protection system, addressing current constraints to
accessing high-quality jobs and securing the sustainability of health services remain pressing.
In Seychelles, there is universal access to education: pre-primary, primary and secondary, with boys and girls enrolling
at the appropriate age. Seychelles has also seen success in the provision of tertiary education for selected priority
areas. However, the opening and widening of opportunities in a higher-productivity economy could leave the local
population behind if they do not have the appropriate education and skills required to participate. For education to
contribute the most to the productivity and participation agendas, it is important to broaden the presence of high-
ly-educated and skilled members of future generations.
The quarterly unemployment rate for 2018 was as as follows: 4.2 percent in Quarter 1; 5 percent in Quarter 2; 35 per-
cent in Quarter 3 and 2.1% in Quarter 4. The unemployment rate is higher among the youth group (15-24 years) with
a recorded rate of 6.5 percent in 2018 Q4. Rising demand for labour renewed applications for Gainful Occupational
Permits (GOPs), which rose to approximately 22,997 in mid-February 2019. Expatriates now account for almost half of
the Seychelles' total workforce in formal employment, and are employed mostly in construction and tourism².
2 State of the Nation Address 2019.
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