Dili, November 14, 2016 – Economic growth in Timor-Leste and the rest of East Asia and Pacific is expected to remain resilient over the next three years, according to a recent report by the World Bank.
Timor-Leste’s economy is forecast to grow from 4.3 percent in 2015 to 5 percent in 2016, according to the World Bank’s East Asia Pacific Economic Update.
The report outlines how investments in infrastructure and other reforms are beginning to show results in Timor-Leste. It recommends that Timor-Leste employ its resources more effectively to support a more diversified economy and longer-term fiscal sustainability.
“The external environment for Timor-Leste remains positive, with the developing East Asia and Pacific region continuing to grow robustly, and major currencies in the region appreciating slightly against the U.S. dollar,” said David Knight, World Bank Country Economist for Timor-Leste. “However, risks from credit markets in the region, and global monetary tightening present impending concerns, and Timor-Leste must address the most binding constraints to its domestic economic growth and develop new options for growth in the medium term.”
The report offers a comprehensive analysis of the outlook for East Asia and Pacific, including Timor-Leste. It says domestic demand is expected to remain robust across much of the region, with continued low commodity prices benefitting commodity importers and keeping inflation low.
The report expects China to continue its gradual transition to slower, but more sustainable growth, from 6.7 percent this year to 6.5 percent in 2017 and 6.3 percent in 2018.
The World Bank Group is one of the world’s largest sources of funding and knowledge for developing countries. Its mission is to fight poverty and improve living standards for people in the developing world.
The World Bank Group has been working with the Government of Timor-Leste since 1999. Through projects and technical assistance, the World Bank is working to help rebuild national infrastructure, stabilize the economy, build strong government institutions and ensure robust public financial management.
Note: The press release has been updated based on November data