Timor-Leste Economy


In 2002, Timor-Leste (East Timor) became an independent nation after more than four centuries of Portuguese colonial rule and two decades of Indonesian annexation. Since then the Government of Timor-Leste has been focused on retaining political unity and boosting economic growth. This is not an easy undertaking after the widespread violence, population displacement and property destruction the country experienced following the 1999 referendum. Most of its infrastructure was destroyed at that time including electrical, water and sewerage systems, roads, schools and medical facilities as well as public and private sector properties.

Despite the steady progress made to date, more than 40% of the population is estimated to still live below the poverty line and there is high unemployment.

Timor-Leste: Person, Human, Vehicle, Car, Automobile, Transportation, Truck, Road, Pickup Truck, Tarmac, Asphalt, Bumper, Freeway, Highway, Van, Bus


In addition to growth in Timor-Leste’s public sector, an increasing number of small businesses, primarily in construction and in the wholesale and retail sale of goods, are being set up. Most of these business and enterprises are concentrated in Dili, which consequently has changed significantly since independence with ongoing construction of buildings and upgrading of infrastructure. As in most capital cities, Dili offers a wide range of shopping, accommodation, restaurants and other services. In contrast, the towns and traditional villages in the surrounding districts have changed to a less noticeable extent, with the exception of road upgrading and electricity development. The people who live in rural areas continue to be primarily engaged in small scale fishing, forestry and farming.

Timor-Leste: Vehicle, Transportation, Car, Automobile, Person, Human, Pickup Truck, Truck, License Plate

Oil Sector

Currently Timor-Leste’s economy is mostly dependent on the extraction of oil reserves from the Timor Sea which account for a massive 80% of GDP. These funds have enabled significant investment in core services and infrastructure, especially related to roads and electricity. However, while oil has been critical in maintaining the early stages of development in Timor-Leste, existing oil fields are being depleted and there is an urgent need to diversify the economy before the oil reserves dry up.

Timor-Leste: Nature, Land, Outdoors, Shoreline, Water, Sea, Ocean, Neighborhood, Building, Urban, Plant, Vegetation, Landscape, Scenery, Suburb, Coast, Tree, Aerial View, Vehicle, Boat, Transportation, Panoramic, Woodland, Forest, Grove, Promontory

Other Sectors

In Timor-Leste’s, non-oil economy only accounts for 21% of GDP. Agriculture plays a very important role in Timor’s economy, employing more than 50% of the population. Given then country’s natural beauty, culture and heritage tourism is seen as a critical sector to future economic development – a goal to be achieved by  focusing on cultural heritage, adventure and ecotourism experiences.

Improving production from agriculture and fishing is also seen as very important, especially from a food security perspective and as a way of reducing imports.

Timor-Leste: Person, Human, Soil, Clothing, Apparel, Tool, Archaeology, Hoe, Planting, Worker, Hat, Stick

Getting Around
Timor-Leste is an exciting country to explore and there is a lot to see out in the districts.
Find transport

Where to stay
Timor-Leste is an exciting country to explore and there is a lot to see out in the districts.
Find accommodation

What to do
Timor-Leste is an exciting country to explore and there is a lot to see out in the districts.
Find what to do

Travel Tips
Timor-Leste is an exciting country to explore and there is a lot to see out in the districts.
What do you need to know?