Democratic Republic of Timor-Leste : 2025 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Democratic Republic of Timor-Leste.

Format:

Book

Government document

Author/Creator:

International Monetary Fund. Asia and Pacific Dept.

Series:

IMF Staff Country Reports; Country Report ; No. 2025/278

IMF Staff Country Reports

Language:

English

Physical Description:

1 online resource (77 pages)

Place of Publication:

Washington, D.C. : International Monetary Fund, 2025.

Summary:

The 2025 Article IV Consultation highlights that Timor-Leste’s financial buffers and favorable demographics provide an opportunity to develop its economy. Despite impressive progress since independence, the economy remains under-diversified, while fiscal and external imbalances are large. Growth is estimated to have risen to 4.1 percent in 2024 supported by fiscal expansion and strong credit growth. Growth is projected to remain robust at 3.9 percent this year and to moderate to 3.3 percent in 2026. In order to support growth and macroeconomic stability, Timor-Leste’s substantial savings should be spent better and more prudently. The composition and quality of public spending must be improved by prioritizing investment in physical and human capital. At the same time, containing overall spending is needed to preserve fiscal sustainability. Advancing the financial sector reform agenda, including progress on the issuance of land titles, is crucial to accelerate private sector development. Eliminating large fiscal and external imbalances while facilitating higher growth through structural reforms would support continued macroeconomic stability and deliver higher living standards.

Notes:

Description based on print version record.

ISBN:

9798229026697