Buffeted by COVID-19 and Tropical Cyclone Seroja, the non-oil economy grew by 1.5 percent in 2021. A record-high budget with expenditure of nearly 90 percent of GDP bolstered government consumption. A series of fiscal and quasi-fiscal stimulus measures supported employment and incomes, thereby...

Given the finite nature of petroleum resources and associated sovereign wealth fund, it iscritical for Timor-Leste to build a strong foundation for sustainable revenue mobilization tofinance public spending on development and poverty reduction. Timor-Leste faces the risks ofa fiscal cliff as,...

This Public Expenditure Review is focused on the quality and sustainability of public spending. The key objective of this Public Expenditure Review (PER) is to assess the quality of public spending, by evaluating its efficiency and effectiveness, while also delving into sustainability...

Although Timor-Leste has made considerable progress in many areas since its independence in 2002, it faces significant medium-term challenges. The nation has pressing development needs, young institutions, and is highly dependent on oil. Oil revenues from active fields, which have been the main...

Strengthening the role of women and promoting gender equality are key priorities for the Timor-Leste government and essential for achieving the World Bank's twin goals of eradicating extreme poverty and sustainably boosting shared prosperity. The Timor-Leste Country Gender Action Plan (CGAP)...

Given the finite nature of petroleum resources and associated sovereign wealth fund, it iscritical for Timor-Leste to build a strong foundation for sustainable revenue mobilization tofinance public spending on development and poverty reduction. Timor-Leste faces the risks ofa fiscal cliff as,...

According to the Timor-Leste Demographic and Health Survey, in 2016 about 46 percent of all children less than five years old are stunted, 24 percent are wasted, and 40 percent are anemic. Rural children are more at risk of being malnourished than urban children; boys are at greater risk than...

This report uses innovative data to investigate the economic impacts of the Coronavirus (COVID-19) pandemic. Timor-Leste is a relatively data-scarce country, which poses a considerable challenge for real-time evidence-based policymaking. Data on overall economic activity is published on an...

Economic activity is expected to contract in 2020, owing to political uncertainty and the impact of the novel coronavirus (COVID-19). Despite a return to economic growth in 2019, failure to approve a state budget for 2020, renewed political uncertainty, and the global COVID-19 outbreak have all...

Buffeted by COVID-19 and Tropical Cyclone Seroja, the non-oil economy grew by 1.5 percent in 2021. A record-high budget with expenditure of nearly 90 percent of GDP bolstered government consumption. A series of fiscal and quasi-fiscal stimulus measures supported employment and incomes, thereby...

The Timor-Leste Economic Report provides an up-to-date assessment of key economic developments, presents the World Bank's forecasts and outlook for Timor-Leste and provides an in-depth examination of selected policy issues relevant to Timor-Leste. The TLER is intended for a wide audience,...

About 80 percent of the poor households in Timor-Leste live in rural areas and are dependent on agriculture for their livelihood. It is therefore widely acknowledged that growth in the agriculture sector is an important channel through which poverty can be reduced in the country. That...

Following a two-year recession, economic activity is expected to recover in 2019. Public spending, which has traditionally been the key driver of economic growth, increased by 16 percent in the first half of 2019 when compared to the same period in 2018. Higher spending was predominantly focused...

This report describes the findings from an educational evaluation carried out in Timor-Leste early in the school year of 2017. The primary purpose of the evaluation was to develop preliminary insights into the effectiveness of the New Curriculum and a second supporting educational innovation,...

This 2019 Article IV Consultation highlights that Timor-Leste remains a fragile post-conflict nation with weak human and institutional capacity and large infrastructure gaps. The main challenge facing Timor-Leste is to effectively manage its petroleum wealth to reduce public-sector dependence,...

This book aims to foster a better understanding of the particular challenges faced by resource-dependent countries or jurisdictions in managing their resource revenues through natural resource funds (NRFs). It explores the varieties of natural resource management strategies as dictated primarily...

Strengthening the role of women and promoting gender equality are key priorities for the Timor-Leste government and essential for achieving the World Bank's twin goals of eradicating extreme poverty and sustainably boosting shared prosperity. The Timor-Leste Country Gender Action Plan (CGAP)...

The attraction of foreign investment, particularly in the field of infrastructure building and maintenance, plays a central role in the development of Timor-Leste. This paper discusses the advantages and potential risks of using international investment agreements as a tool to promote foreign...

Gross domestic product (GDP)1 growth is expected to have fallen sharply in 2017 to a projected -1.8 percent from 5.3 percent the year before. This contraction is driven by a reversal of trend in government spending. In the last six months, the political impasse has worsened, with the President...

Despite significant progress since gaining independence in 2002, Timor-Leste's economy is still struggling with declining oil revenues and slowing economic growth, while access to improved basic services is still low and vulnerability to natural disasters remain high. In that context, strategic...

This first systematic country diagnostic (SCD) for Timor-Leste identifies key priorities to sustainably achieve the World Bank Group (WBG) twin goals of eradicating extreme poverty and boosting shared prosperity in Timor-Leste. The Timor-Leste SCD presents a key set of priorities towards...

For the people of Timor-Leste, independence promised a fundamental transformation from foreign occupation to self-rule, from brutality to respect for basic rights, and from poverty to prosperity. In the eyes of the country's political leaders, revenue from the country's oil and gas reserves is...

Gross domestic product (GDP)1 growth is expected to have fallen sharply in 2017 to a projected -1.8 percent from 5.3 percent the year before. This contraction is driven by a reversal of trend in government spending. In the last six months, the political impasse has worsened, with the President...

The Timor Leste secession conflict lasted for 25 years. Its last wave of violence in 1999, following the withdrawal of Indonesian troops, generated massive displacement and destruction with widespread consequences for the economic and social development of the country. This paper analyzes the...

Using data from the 2007 Timor-Leste Living Standards Survey, this paper examines the determinants of household energy choices in Timor-Leste. The majority of households are dependent on dirty fuels such as fuelwood and kerosene for energy. Only a small fraction of households use clean energy...

This 2017 Article IV Consultation highlights that Timor-Leste's non-oil real GDP growth in 2016 is estimated at 5.5 percent, supported by a near doubling of government capital spending, albeit with large import leakages. Real total GDP declined by 7.9 percent in 2016, owing to a sharp fall in...

There is an inherent tension between traditional norms and survey protocols for quantitative data collected in the developing world. Unexpected interactions between the interviewer and respondent can lead to interviewer effects in the data, particularly in the case of subjective or sensitive...

While the Timorese economy has shown signs of faster growth in recent years, and public spending has increased substantially, how the poor have fared through this period has remained largely unknown. The successful conclusion of the third round of the Timor-Leste Survey of Living Standards...

The establishment of a formal land tenure system in Timor-Leste has been one of the most daunting and enduring challenges for the country since its independence. The nation's history of colonialism, occupation and conflict has resulted in a complex environment of conflicting land claims to which...

This paper discusses recent economic developments, economic outlook, and risks in Timor-Leste. Growth has moderated while inflation has fallen sharply. Owing to a sharp fall in oil revenues and large development needs, Timor-Leste is facing difficult policy challenges. According to industry...

Like many low-income countries, Timor-Leste faces challenges in providing employment for and increasing the skills of its labor force-challenges made more acute by high fertility rates, a very young population, and the capacity constraints of a new nation. However, there is limited information...