Timor-Leste Economy 2008

Economy - overview:
In late 1999, about 70% of the economic infrastructure of Timor-Leste was laid waste by Indonesian troops and anti-independence militias, and 300,000 people fled westward. Over the next three years, however, a massive international program, manned by 5,000 peacekeepers (8,000 at peak) and 1,300 police officers, led to substantial reconstruction in both urban and rural areas. By the end of 2005, all refugees either returned or resettled in Indonesia. The country faces great challenges in continuing the rebuilding of infrastructure, strengthening the infant civil administration, and generating jobs for young people entering the work force. The development of oil and gas resources in nearby waters has begun to supplement government revenues ahead of schedule and above expectations - the result of high petroleum prices. The technology-intensive industry, however, does little to create jobs for the unemployed because there are no production facilities in Timor, and the gas is piped to Australia. The parliament in June 2005 unanimously approved the creation of a petroleum Fund to serve as a repository for all petroleum revenues and preserve the value of Timor-Leste's petroleum wealth for future generations; the Fund held assets of US$1.8 billion as of September 2007. The mid-2006 outbreak of violence and civil unrest disrupted both private and public sector economic activity. Real non-oil GDP growth in 2006 probably was negative. The underlying economic policy challenge the country faces remains how best to use oil-and-gas wealth to lift the non-oil economy onto a higher growth path and reduce poverty. The new government in late 2007 announced plans aimed at increasing spending, reducing poverty, and improving the country's infrastructure, but continues to face capacity challenges.

GDP (purchasing power parity):
$370 million (2004 est.)

GDP (official exchange rate):
$349 million (2005)

GDP - real growth rate:
1.8% (2005 est.)

GDP - per capita (PPP):
$800 (2005 est.)

GDP - composition by sector:
agriculture: 8.5%
industry: 23.1%
services: 68.4% (2004)

Labor force:
NA

Labor force - by occupation:
agriculture: NA%
industry: NA%
services: NA%

Unemployment rate:
50% estimated; note - unemployment in urban areas reached 20%; data do not include underemployed (2001 est.)

Population below poverty line:
42% (2003 est.)

Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%

Distribution of family income - Gini index:
38 (2002 est.)

Inflation rate (consumer prices):
1.4% (2005)

Budget:
revenues: $733 million
expenditures: $309 million
note: the government passed a transitional budget to cover the latter half of 2007 and has moved the fiscal cycle to a calendar year, starting with the budget they passed for 2008 (FY06/07 est.)

Agriculture - products:
coffee, rice, corn, cassava, sweet potatoes, soybeans, cabbage, mangoes, bananas, vanilla

Industries:
printing, soap manufacturing, handicrafts, woven cloth

Industrial production growth rate:
8.5% (2004 est.)

Electricity - production:
NA kWh (2005)

Electricity - consumption:
NA kWh (2005)

Electricity - exports:
0 kWh (2005)

Electricity - imports:
0 kWh (2005)

Oil - production:
94,420 bbl/day (2005)

Oil - proved reserves:
0 bbl (1 January 2006 est.)

natural gas - production:
0 cu m (2005)

natural gas - consumption:
0 cu m (2005)

natural gas - exports:
0 cu m (2005 est.)

natural gas - imports:
0 cu m (2005)

natural gas - proved reserves:
200 billion cu m (1 January 2006 est.)

Exports:
$10 million; note - excludes oil (2005 est.)

Exports - commodities:
coffee, sandalwood, marble; note - potential for oil and vanilla exports

Exports - partners:
US, Germany, Portugal, Australia, Indonesia (2006)

Imports:
$202 million (2004 est.)

Economic aid - recipient:
$184.7 million (2005 est.)

Market value of publicly traded shares:
$NA

Currency (code):
US dollar (USD)

Exchange rates:
the US dollar is used