Tourism, agriculture, and fishing are the principal sectors of the economy. Receipts from tourism were $30 million in 1997, when 125,000 tourists visited the country. Trade is dominated by the importation and reexport of petroleum; other exports include fish, copra, and cinnamon bark. Various fruits are grown for domestic consumption, however, the staple food, rice, must be imported. Since the completion of the international airport at Victoria in 1971, tourism has expanded rapidly. Guano is the only mineral product.

Agriculture accounts for less than one-tenth of the gross domestic product (GDP) and employs about one-tenth of the workforce. Arable land is limited and the soil is generally poor, but coconuts, cinnamon bark, vanilla, and essential oils are produced for export. The Seychelles has a modern fishing industry that supplies both domestic and foreign markets. The extraction of guano for export has also become an established economic activity. The nation's relatively small manufacturing sector is composed largely of food-processing plants. Services account for the largest share of the GDP and employ the largest proportion of the workforce. Since the opening of Mahé international airport in 1971, the tourism industry has grown rapidly, currently providing almost three-fourths of all foreign exchange. The Seychelles' main imports are petroleum products, machinery, and foodstuffs. Canned tuna, copra, frozen fish, and cinnamon are the most important exports, together with the reexport of petroleum products.

Since independence in 1976, per capita output in this Indian Ocean archipelago has expanded to roughly seven times the old near-subsistence level. Growth has been led by the tourist sector, which employs about 30% of the labor force and provides more than 70% of hard currency earnings, and by tuna fishing. In recent years the government has encouraged foreign investment in order to upgrade hotels and other services. At the same time, the government has moved to reduce the dependence on tourism by promoting the development of farming, fishing, and small-scale manufacturing. The vulnerability of the tourist sector was illustrated by the sharp drop in 1991-92 due largely to the Gulf war. Although the industry has rebounded, the government recognizes the continuing need for upgrading the sector in the face of stiff international competition. Other issues facing the government are the curbing of the budget deficit and further privatization of public enterprises. Growth slowed in 1998-2000, due to sluggish tourist and tuna sectors. Tight controls on exchange rates and the scarcity of foreign exchange have hindered short-term economic prospects. The black market value of the Seychelles ruppee is half the official exchange rate; without a devaluation of the currency the tourist sector should remain sluggish as vacationers seek cheaper destinations such as Comoros, Mauritius, and Madagascar.