The reading is higher than a predicted growth target of 3.5% and last year’s growth of just 3.3%, when COVID-19 lockdowns left a dent on the economy and impacted investment.

So far as inflation is concerned, in its 2022 economic outlook report the International Monetary Fund said it anticipates Timor-Leste’s inflation will register a rate of 7% this year – slightly below the government’s forecast, of 7.2% – slowing to 4.0% in 2023.

Inflation in Timor-Leste is seen slowing from 2023 onwards, in line with the latest IMF estimates, its report explains.

The economic growth comes as Timor-Leste’s Foreign Affairs Minister Adaljiza Magno met with her Indonesian counterpart, Retno Marsudi in Jakarta on Wednesday to discuss efforts to increase economic cooperation and settle land boundaries between the two countries.

In a written statement, the Indonesian Ministry of Foreign Affairs said that the two ministers agreed to begin discussions on a joint free-trade zone agreement for the border industrial area between Oecusse and East Nusa Tenggara province, Indonesia.

Regarding the land border, the two ministers agreed to push for efforts to settle discussions on two segments of the Indonesia-Timor-Leste land border, namely Bidjael Sunan-Oben and Noel Besi-Citrana.