The International Monetary Fund expects Seychelles' economy to expand by 4.3 percent this year, more than its earlier 3.5 percent forecast, helped by improved tourism sector performance and private sector credit

Tourism is a major economic activity in the Indian Ocean archipelago.

"Reflecting strong tourist arrivals and expanding credit to the private sector, economic growth for 2015 has been revised up," IMF said in a statement late on Wednesday.

"The growth outlook for 2016 remains positive, despite economic headwinds in China and Europe, which are important source markets for tourists in Seychelles."

Seychelles' economy grew by 3.3 percent in 2014.

Inflation stood a 4.5 percent year-on-year in September from 4.6 percent a month earlier.