NAIROBI, June 21 (Reuters) - Seychelles' economy is seen growing at 4.1 percent this year from 4.5 percent in 2016, its finance minister said, while the International Monetary Fund said performance of its tourism sector remained vulnerable to external factors.
The Indian Ocean country of 93,000 people largely depends on tourism for government revenues but has sought to promote itself as a low-tax, financial services hub.
"For 2017 the growth prospects remain favourable...as tourist arrivals continue to rise at a sustained pace, while inflation should remain subdued, on account of the stability of fuel and other commodity prices," Finance Minister Peter Larose said in a letter to the IMF released on Tuesday.
Seychelles' inflation rose to 3.18 percent year-on-year in May from -0.78 percent a month earlier.
IMF said in a separate statement that Seychelles' economy was still vulnerable to external factors that could affect its tourism sector.
"The outlook for tourist arrivals remains highly susceptible to external developments, such as weak growth in advanced and emerging market economies, weakness in the Euro, and geopolitical tensions disrupting the Middle East, Africa, and Europe," it said. (Reporting by George Obulutsa; Editing by Angus MacSwan)