As a single party socialist state, during the 1970’s and 80’s economic activity became centralized in the hands of about 30 parastatal (corporations with the majority shares in the hands of Government) designed to stabilize the economy and reduce its susceptibility to external shocks.

In accordance with the stabilization process, the development of infrastructure, education and health was undertaken to create a solid base for future economic growth. Today the country is in transition from central planning to a free market economy with greater private sector involvement. The government has since 2006 proceeded to privatise state held assets, ranging from manufacturing activities to financial services.  Privatisation of assets is still ongoing.

 

However, strategic social sectors of the economy, including the generation of electricity, provision of treated water, imports of essentials and staple commodities and public transport remain under government control. Tourism and fisheries remain as the back bone of the economy and provide the bulk of Seychelles foreign exchange earnings.

 

The financial services sector is currently being developed as the third pillar of the national economy.

The  US$10,671 GDP per capita at the end of 2008, has lead the country to be internationally categorised as a middle Income country, and providing a relatively high standard of living for all Seychellois.