Timor-Leste's GDP grows 1.5% as Domestic Spending Rises Featured

By The Independente April 08, 2022 378
Ministry of Finance, Rui Gomes. Image:INDEPENDENTE. Ministry of Finance, Rui Gomes. Image:INDEPENDENTE.

DILI:Timor-Leste’s economy expanded by 1.5% in 2021 thanks to jump in private and public sector activity, reversing a negative 8.6% GDP in 2020.

This is despite the various restrictions implemented by the country in 2021 (states of emergency, sanitary fences and compulsory confinements), caused by the COVID-19 pandemic and floods that have limited the movement of people and goods.

Ministry of Finance statement on Friday said a more complete 2021 GDP picture that includes data on production will be available in September.


From the first quarter, public consumption rose by 6.2%, led by increased employment and the consumption of goods and services, due to the growth in expenditure on the supply of operational materials and professional services related to COVID-19.

Private consumption rose by 2.4per cent and per capita growth was maintained. The Government's solid support to households through the transfer of goods and subsidies and the resumption of household economic activities contributed to this.

Exports of goods and services improved by 26%, driven by coffee exports, which increased due to the growth in production volume and the stocks accumulated during 2020.

Imports of goods and services declined by 10.5%. Imports of services alone fell by 40.7%. On the other hand, there was a 13% increase in the consumption of imported goods, consistent with the increase in private consumption and also with the expansion of international borders in Timor-Leste's main trading partners.

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