Publication: Timor-Leste Economic Report, January 2024 - Fit for Purpose: Crafting a Stable, Inclusive, and Resilient Financial Sector
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Date
2024-02-26
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Published
2024-02-26
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Abstract
The final national accounts for 2022 have slightly raised the non-oil growth rate, with consumption driving economic activities. The IX Constitutional Government has an ambitious target of creating some 50 000 jobs over the next five years, but the lack of economic dynamism hinders job creation for rapidly expanding workforce. In response to severe slow budget execution, the new government revised the 2023 budget, decreasing planned expenditure by 12 percent, aligning closely to the actual spending in 2022. For the first nine months of 2023, consumer price inflation remained high at 8.3 percent year-on-year, driven by a notable rise in both food and non-food prices. The growth in money supply has paralleled fiscal expansion, leading to substantial liquidity in the banking sector which remains largely unutilized by the real sector. There have been consistent trade deficits since Q4 2022, reaching 17.1 percent of gross domestic product (GDP) by September 2023.
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Citation
“Rezza, A.A.; Pakpahan, Y.M.; Alibhai, S.. 2024. Timor-Leste Economic Report, January 2024 - Fit for Purpose: Crafting a Stable, Inclusive, and Resilient Financial Sector. © http://hdl.handle.net/10986/41107”