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Seychelles Economic Growth to Quicken Next Year: Laporte

Economic growth in Seychelles, the Indian Ocean nation that relies on tourism for most of its foreign currency, will pick up next year and inflation will slow, Finance Minister Pierre Laporte told lawmakers.

Gross domestic product will expand 3 percent, faster than the 2.7 percent estimate for 2012, he said. Inflation will slow to about 5 percent from 7.6 percent at the end of October, he said.

The government plans to maintain the nation’s budget surplus as economic growth rebounds, Laporte said. While the outlook for growth is positive, inflation remains the biggest threat to the economy, he told lawmakers.

Tourism revenue will expand by 3 percent, helping to increase total revenue 3 percent to 6.3 billion rupees ($482 million), he said. The government will spend about 5.4 billion rupees, 15 percent higher than a year earlier, driving the surplus to 5.6 percent.

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