Question

With reference to the economic data of Seychelles (1)What is the country's unemployment rate? How does it compare to the United States' unemployment rate? Are they better off or worse off than us?
(2)What is the country's currency? What is the exchange rate with the dollar? Does it have a floating or fixed exchange rate, or does it use the dollar as its currency?
(3)Who are its’ main trading partners? Is foreign investment important for them? Does the country have a trade deficit or surplus? What percent of the GDP are exports? (you can just divide the value of exports by the GDP).
(4)Using the information about unemployment, inflation and trade, what is your general assessment of the country? Are they experiencing stability and growth or an economic crisis? Please answer in about 250 words.

Answer 1

Economic Data for "Seychelles"

(1) Unemployment rate in Seychelles: 3.5%

Unemployment rate in USA: 4%

The unemployment rate is lower in Seychelles as compared to the USA and Seychelles is better off as it is creating more and more jobs for its workers.

(2) Currency of Seychelles: Seychellois rupee

Exchange rate with Dollar: 1 US dollar = 13.60 Seychellois Rupees

It has a floating exchange rate regime, which is market determined.

(3) Trading partners:

Exporting partners: France, UK, Italy, Germany, Switzerland

Importing Partners: UAE, Germany, Spain, France, Singapore

Trade Deficit: -756,878 (in USD thousand) (Negative trade balance) (2017) (Trade deficit)

Yes it requires a lot of foreign investment in the country.

Percentage of the GDP to exports: 21.24% in 2017 (world bank)

(4) Inflation rate: 2.86% (2017)

The unemployment and inflation rates are low in the country which are good for any country. however, the trade balance is in negative which means it needs to increase its exports and decrease its imports from the rest of the world.