Since independence in 1976, per capita output 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 labour 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. These incentives have given rise to an enormous amount of investment in real estate projects and new (mostly 5 star) resort properties. Hilton, Four Seasons and Banyan Tree are all new entrants to Seychelles. Development projects projected in the hundreds of millions of dollars each are in the beginning stages for Emirates Airlines, Qatar Airlines, Raffles, Shangri-La, etc. Other private developments such as Ile Aurore, Per Aquam and Eden Island are projected at over $2 billion.

At the same time, the government has moved to reduce the dependence on tourism by promoting the development of farming, fishing, small-scale manufacturing and most recently the offshore sector. The vulnerability of the tourist sector was illustrated by the sharp drop in 1991-1992 due largely to the country's significantly overvalued exchange rate and the Gulf War, and once again following the September 11, 2001 attacks on the United States. Other issues facing the government are the curbing of the budget deficit, including the containment of social welfare costs, and further privatisation of public enterprises. The government has a pervasive presence in economic activity, with public enterprises active in petroleum product distribution, insurance (has now been privatized), banking (is being privatized very soon), imports of basic products (now being privatized), telecommunications (4 private ISP/telecom companies), and a wide range of other businesses. Beginning at the turn of the millennium the Seychelles Petroleum Company (SEPEC) started to develop the first fleet of modern Petroleum double-hull tankers (five vessels), which was completed by late 2007/early 2008 with the possibility to build more in the near future. The Seychelles President claims that this has opened the door to a new industry for his country and encouraged economic growth by further removing over-reliance on traditional trades like fisheries and tourism which is now falling rapidly as the country's main income but nevertheless, has experienced significant growth in recent years.

Growth slowed in 1998–2001, due to sluggish tourist and tuna sectors. Also, tight controls on exchange rates and the scarcity of foreign exchange have impaired short-term economic prospects. The black market value of the Seychellois rupee is anywhere from two thirds to one half the official exchange rate. The next few years were also a bit slow due to the worldwide economic downturn and the fear of flying brought on by September 11, 2001. More recently though, tourism has roared back at a record pace setting successive records in 2006 and again in 2007 for number of visitors. The increased availability of flights to and from the archipelago due in part to new entrants Emirates and Qatar airlines is also beginning to show. New 5 star properties and the devaluation of the currency by nearly 33% by the Seychelles Government is having a positive influence on the tourism sector as well.