The economy depends mainly on tourism and fishing. (Gérard Larose)
Seychelles has been ranked as the richest country in Africa in the World Finance Magazine edition published on December 21.
According to the magazine, Seychelles is ranked 56th in the world and tops the list of African countries with a gross domestic product (GDP) and purchasing power parity (PPP) of $39,662.
The Seychelles, an archipelago in the western Indian Ocean, has a population of just over 100,000 and its economy depends mainly on tourism and fishing.
In 2023, through November, Seychelles welcomed 317,915 tourists, contributing $873 million to the economy from January to November, an increase of 4.8% compared to the same period in 2022.
THE World Finance Magazine states that “many of the world’s richest countries are also the world’s smallest: the pandemic and global economic downturn have left their immense wealth largely untouched.”
He added that even if a country gross domestic product (GDP) represents the total value of goods and services produced; dividing this output by the number of full-time residents provides a more accurate estimate of a country’s relative wealth.
“While gross domestic product (GDP) measures the value of all goods and services produced in a country, dividing this production by the number of full-time residents is a better way to determine how rich or poor a country’s population is relative to that of another,” he adds.
Get a more accurate picture of a country’s average standard of living by taking into account inflation rates and the cost of local goods and services. The resulting figure is known as purchasing power parity (PPP).
“Should we then automatically assume that in countries where PPP is particularly high, the overall population is visibly better off than in most other places in the world? Not quite. We are dealing with averages and, within of each country, structural inequalities can easily tip the balance in favor of those who are already advantaged,” the magazine believes.
Neighboring island Mauritius is the second richest African country and ranks 66th in the world, followed by Libya at 73rd.
The three richest countries are the Republic of Ireland, followed by Luxembourg, Singapore and Qatar.
At the other end of the spectrum are South Sudan, Burundi and the Central African Republic.