Timor-Leste

Quick Facts

🇹🇱
Capital:
Dili
Official Language(s):
Portuguese, Tetum
Currency:
United States dollar ($)
Population:
1,318,442

Overview

Timor-Leste, also known as East Timor, officially the Democratic Republic of Timor-Leste, is a country in Southeast Asia. It comprises the eastern half of the island of Timor, the coastal exclave of Oecusse in the island's northwest, and the minor islands of Atauro and Jaco. Australia is the country's southern neighbour, separated by the Timor Sea. The country's size is 14,950 square kilometres (5,770 sq mi). Dili, on the north coast of Timor, is its capital and largest city.

Institutional Framework

The strength of a country's institutions directly impacts its economic development and stability. Strong institutions reduce uncertainty, protect property rights, and enable efficient markets through:
  • Rule of law and contract enforcement
  • Control of corruption
  • Government effectiveness and regulatory quality

* Indicators normalized to 0-100 scale

Economic Structure

The composition of an economy reveals its strengths, vulnerabilities, and potential for growth. Understanding the balance between sectors (agriculture, industry, services) and their sophistication helps assess economic resilience and development opportunities.

Economic Health & Trade

Economic Scale & Power

An economy with $3,624,889,700B(2021) GDP, showing strong growth at 5.4%(2021). Emerging economy with development potential.

GDP Growth
5.4%(2021)
GDP PPP
$9,214,418,371.68

Economic Structure

Economic structure shows 30.4%(2021) in services, 62.2%(2021) in industry, and 8.7%(2021) in agriculture. Industry-driven economy.

Economic Health & Trade

Economic health indicators show 2.3%(2021) unemployment and 3.7%(2021) inflation. Trade profile with 63.5%(2021) exports and 36.4%(2021) imports as % of GDP.

Unemployment
2.3%(2021)
Inflation
3.7%(2021)
Exports/GDP
63.5%(2021)
Imports/GDP
36.4%(2021)

Innovation & Competitiveness

Innovation capacity determines a country's ability to compete in the global knowledge economy. Key indicators like R&D investment, patent applications, and high-tech exports reveal the potential for sustainable economic growth and value creation.

High-Tech Exports

N/A

% of manufactured exports

ICT Exports

N/A

% of total goods exports

Digital Adoption

35.5

% of population using internet

Mobile Connectivity

104.9

Subscriptions per 100 people

Manufacturing Value

0.8

% of GDP

International Position

A country's integration into global markets affects its economic opportunities and risks. Trade relationships, financial flows, and geographic advantages or constraints shape its development trajectory and resilience to external shocks.

Financial & Trade Geography

Trade Profile

Trade represents 99.87%(2021) of GDP, with a trade balance of 27.16%(2021).

FDI Inflows
-11.56%(2021)
FDI Outflows
-0.70%(2021)

Financial Security

External Debt

7.06%(2021)

Foreign Reserves

$0.93B(2021)(6.5 months of imports)

Supply Chain & Technology

Technology Trade

ICT Imports
N/A
High-Tech Exports
N/A

Economic Structure

Manufacturing
0.75%(2021)
Services
30.44%(2021)

Trade Agreements & Dependencies

Trade Agreements

No major trade agreements

Critical Dependencies

    Growth Trajectory

    Understanding growth patterns helps predict future economic performance and development challenges. Key factors include productivity trends, investment levels, and structural transformation progress, which together determine long-term prosperity potential.

    Growth Potential Indicators

    Human Capital

    Education and workforce development

    10.7/100

    Trade Position

    International trade and competitiveness

    -2.4/100

    Economic Structure

    Sectoral balance and sophistication

    31.1/100

    Demographics & Human Capital

    Demographics are fundamental to understanding a country's economic potential and challenges. The population structure influences everything from labor force availability to social security systems and public spending priorities.

    Demographics

    Population Overview

    Total population of 1,350,139(2021) with 1.8%(2021) annual growth. Median age is N/A with fertility rate at 3.149 births/woman(2021).

    Life Expectancy
    67.737 years(2021)
    Birth Rate
    24.944 per 1,000(2021)

    Age Structure

    Working-age population (59.1%(2021)) with youth at 35.4%(2021) and elderly at 5.5%(2021). Total dependency ratio: 69.3%(2021).

    Young Dependency
    60.0%(2021)
    Old Dependency
    9.3%(2021)

    Gender & Migration

    Population is 49.6%(2021) female and 50.4%(2021) male, with sex ratio of 1.071 males/female(2021) at birth. Net migration: 3,111(2021).

    Male Mortality
    204.538/1,000(2021)
    Female Mortality
    156.549/1,000(2021)

    Development Indicators

    Urban population growing at 3.0%(2021) annually, with 68.3%(2021) in rural areas. Literacy rate: N/A.

    Urbanization
    31.7%(2021)
    Infant Mortality
    42.9 per 1,000(2021)

    Population Structure

    The population pyramid visualizes the age and gender distribution, revealing crucial insights about economic sustainability. A balanced pyramid with a strong working-age population (typically ages 15-64) indicates greater economic potential, as this group supports both the younger and older generations through:
    • Labor force participation and productivity
    • Tax contributions to support social services
    • Innovation and economic growth

    An aging population (top-heavy pyramid) or youth bulge (bottom-heavy) can create demographic pressures on social systems and economic stability.

    Source: World Bank Development Indicators

    Security Context

    Security considerations fundamentally affect economic development and investment attractiveness. Both geographic factors and military capabilities influence a country's stability and its ability to protect economic interests and maintain sustainable growth.

    Geographic & Resource Security

    Food & Agriculture

    Arable land comprises 7.5%(2021) of territory, with 23.0%(2021) total agricultural land. Cereal yield: 1,201.9 kg/hectare(2021).

    Food Production Index
    89.77(2021)
    Cereal Production
    101,513 MT(2021)

    Energy Security

    Net energy imports at N/A of consumption. Renewable energy makes up 100.0%(2021) of total. Electricity access: N/A.

    Resource Rents
    N/A

    Water Resources

    Fresh water resources of 1,500 m³/capita(2021) per person. Annual precipitation: 61.849 mm(2021).

    Forest Area
    1.1%(2021)

    Environmental Vulnerability

    6084.6%(2021) of population affected by climate disasters. Forest coverage at 1.1%(2021) providing natural buffer.

    Annual Rainfall
    61.849 mm(2021)

    Military & Security

    Military Capabilities

    Military expenditure at N/A of GDP. Armed forces personnel: N/A ( N/A of labor force).

    Arms Exports
    N/A
    Arms Imports
    N/A

    Strategic Status

    Military Alliances

    No major military alliances

    Nuclear Status

    Non-Nuclear State

    Security Environment

    Refugee population: 83,965(2021)Internally displaced: 80,622(2021)

    Strategic Geography

    Strategic Features

    • Borders 1 countries