Economic Performance Still Below Target, Says Xanana Gusmão

East Timor Prime Minister Xanana Gusmão said today that economic performance in 2024 remains below the target set by the government and advocated more structural reforms and greater participation of the private sector.

Timor-Leste's economic growth is expected to reach 4% in 2024, an improvement on the 2.4% recorded in 2023, and is expected to accelerate to 4.4% in 2025, according to the report on the country's economic performance released today by the Central Bank of Timor-Leste (BCTL).

"This highlights the need for deeper structural reforms, greater private sector participation and more efficient public investment to ensure long-term economic resilience," said Xanana Gusmão, at the Ministry of Finance, where the document was presented.

The prime minister stressed that the country's economy "continues to face structural constraints, including limited absorption capacity", "high dependence on imports" and a "still underdeveloped private sector".

"These factors have contributed to imbalances in growth, with public spending being the main driver of economic activity. To address this situation, the Government remains committed to fiscal consolidation, improving the mobilization of internal revenues and prioritizing investments in sectors that promote sustainable development, such as agriculture, tourism and infrastructure," assured Xanana Gusmão.

The Timorese chief executive argued that "financial inclusion and access to financing are essential to unlock the country's economic potential", as well as support for small and medium-sized companies, which he considered "fundamental to diversifying the economy and reducing dependence on oil revenues".

Xanana Gusmão also considered that economic integration in regional and global markets, in reference to the Association of Southeast Asian Nations and the World Trade Organization, "must be actively promoted" to "attract foreign investment and create employment 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 stressed.