Dili, March 21, 2025 (Lusa) - The prime minister of Timor-Leste, Xanana Gusmão, on Friday acknowledged that the country's economic performance in 2024 remained below the target set by the government and advocated more structural reforms and greater participation by the private sector.
The economy is estimated to have grown 4% in 2024 - an improvement on the 2.4% recorded in 2023 - and should accelerate to 4.4% in 2025, according to the report on the country's economic performance released on Friday by the Central Bank of Timor-Leste (BCTL).
"This highlights the need for deeper structural reforms, greater participation by the private sector and more efficient public investment to guarantee long-term economic resilience," said Gusmão, speaking at the Ministry of Finance, where the document was presented.
The prime minister emphasised that the country's economy "continues to face structural constraints, including a limited absorption capacity," a "high dependence on imports" and a "still underdeveloped private sector" as compared to the state sector.
"These factors have contributed to imbalances in growth, with public spending being the main driver of economic activity," Gusmão argued. "To tackle this situation, the government remains committed to fiscal consolidation, improving the mobilisation of domestic revenue and prioritising investments in sectors that promote sustainable development, such as agriculture, tourism and infrastructure."
The head of the Timorese executive argued that "financial inclusion and access to finance are essential to unlocking the economic potential" of the country, as well as support for small and medium-sized enterprises, which he said is "fundamental to diversifying the economy and reducing dependence on oil revenues."
Gusmão also argued that economic integration in regional and global markets, in the form of the Association of Southeast Asian Nations (ASEAN), which Timor is in the process of joining, and the World Trade Organisation (WTO), which it joined last August "must be actively promoted" in order to "attract foreign investment and create job opportunities.
"The government will continue to work closely with the Central Bank, the private sector and development partners to implement reforms that strengthen economic competitiveness and improve governance," he emphasised.
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