Economy - overview:
Since independence in 1999, Timor-Leste has faced great challenges in rebuilding its infrastructure, strengthening the civil administration, and generating jobs for young people entering the work force. The development of offshore oil and gas resources has greatly supplemented government revenues. This technology-intensive industry, however, has done little to create jobs in part because there are no production facilities in Timor-Leste. Gas is currently piped to Australia for processing, but Timor-Leste has expressed interest in developing a domestic processing capability.

In June 2005, the National Parliament unanimously approved the creation of the Timor-Leste Petroleum Fund to serve as a repository for all petroleum revenues and to preserve the value of Timor-Leste's petroleum wealth for future generations. The Fund held assets of $16 billion, as of mid-2016. Oil accounts for over 90% of government revenues, and the drop in the price of oil in 2014-16 has led to concerns about the long-term sustainability of government spending. Timor-Leste compensated for the decline in price by exporting more oil. The Ministry of Finance maintains that the Petroleum Fund is sufficient to sustain government operations for the foreseeable future.

Annual government budget expenditures increased markedly between 2009 and 2012 but dropped significantly through 2016. Historically, the government failed to spend as much as its budget allowed. The government has focused significant resources on basic infrastructure, including electricity and roads, but limited experience in procurement and infrastructure building has hampered these projects. 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 to reduce poverty.

GDP (purchasing power parity):
$7.426 billion (2017 est.)
$7.784 billion (2016 est.)
$7.391 billion (2015 est.)
note: data are in 2017 dollars
country comparison to the world: 166
[see also: GDP country ranks ]

GDP (official exchange rate):
$2.775 billion (2017 est.)
note: non-oil GDP
[see also: GDP (official exchange rate) country ranks ]

GDP - real growth rate:
-4.6% (2017 est.)
5.3% (2016 est.)
4% (2015 est.)
country comparison to the world: 216
[see also: GDP - real growth rate country ranks ]

GDP - per capita (PPP):
$6,000 (2017 est.)
$6,400 (2016 est.)
$6,200 (2015 est.)
note: data are in 2017 dollars
country comparison to the world: 164
[see also: GDP - per capita country ranks ]

GDP - composition, by end use:
household consumption: 33% (2017 est.)
[see also: GDP - composition, by end use - household consumption country ranks ]
government consumption: 30% (2017 est.)
[see also: GDP - composition, by end use - government consumption country ranks ]
investment in fixed capital: 10.6% (2017 est.)
[see also: GDP - composition, by end use - investment in fixed capital country ranks ]
investment in inventories: 0% (2017 est.)
[see also: GDP - composition, by end use - investment in inventories country ranks ]
exports of goods and services: 78.4% (2017 est.)
[see also: GDP - composition, by end use - exports of goods and services country ranks ]
imports of goods and services: -52% (2017 est.)
[see also: GDP - composition, by end use - imports of goods and services country ranks ]

GDP - composition, by sector of origin:
agriculture: 9.1% (2017 est.)
[see also: GDP - composition, by sector of origin - agriculture country ranks ]
industry: 56.7% (2017 est.)
[see also: GDP - composition, by sector of origin - industry country ranks ]
services: 34.4% (2017 est.)
[see also: GDP - composition, by sector of origin - services country ranks ]

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

Industries:
printing, soap manufacturing, handicrafts, woven cloth

Industrial production growth rate:
2% (2017 est.)
country comparison to the world: 133
[see also: Industrial production growth rate country ranks ]

Labor force:
286,700 (2016 est.)
country comparison to the world: 164
[see also: Labor force country ranks ]

Labor force - by occupation:
agriculture: 41%
[see also: Labor force - by occupation - agriculture country ranks ]
industry: 13%
[see also: Labor force - by occupation - industry country ranks ]
services: 45.1% (2013)
[see also: Labor force - by occupation - services country ranks ]

Unemployment rate:
4.4% (2014 est.)
3.9% (2010 est.)
country comparison to the world: 60
[see also: Unemployment rate country ranks ]

Population below poverty line:
41.8% (2014 est.)
[see also: Population below poverty line country ranks ]

Household income or consumption by percentage share:
lowest 10%: 4%
[see also: Household income or consumption by percentage share - lowest 10% country ranks ]
highest 10%: 27% (2007)
[see also: Household income or consumption by percentage share - highest 10% country ranks ]

Distribution of family income - Gini index:
31.9 (2007 est.)
38 (2002 est.)
country comparison to the world: 123
[see also: Distribution of family income - Gini index country ranks ]

Budget:
revenues: 300 million (2017 est.)
[see also: Budget - revenues country ranks ]
expenditures: 2.4 billion (2017 est.)
[see also: Budget - expenditures country ranks ]

Taxes and other revenues:
10.8% (of GDP) (2017 est.)
country comparison to the world: 213
[see also: Taxes and other revenues country ranks ]

Budget surplus (+) or deficit (-):
-75.7% (of GDP) (2017 est.)
country comparison to the world: 222
[see also: Budget surplus (+) or deficit (-) country ranks ]

Public debt:
3.8% of GDP (2017 est.)
3.1% of GDP (2016 est.)
country comparison to the world: 206
[see also: Public debt country ranks ]

Fiscal year:
calendar year

Inflation rate (consumer prices):
0.6% (2017 est.)
-1.3% (2016 est.)
country comparison to the world: 34
[see also: Inflation rate (consumer prices) country ranks ]

Commercial bank prime lending rate:
13.29% (31 December 2017 est.)
14.05% (31 December 2016 est.)
country comparison to the world: 57
[see also: Commercial bank prime lending rate country ranks ]

Stock of narrow money:
$563.3 million (31 December 2017 est.)
$464.1 million (31 December 2016 est.)
country comparison to the world: 167
[see also: Stock of narrow money country ranks ]

Stock of broad money:
$563.3 million (31 December 2017 est.)
$464.1 million (31 December 2016 est.)
country comparison to the world: 171
[see also: Stock of broad money country ranks ]

Stock of domestic credit:
-$213 million (31 December 2017 est.)
-$212 million (31 December 2016 est.)
country comparison to the world: 191
[see also: Stock of domestic credit country ranks ]

Market value of publicly traded shares:
NA
[see also: Market value of publicly traded shares country ranks ]

Current account balance:
-$284 million (2017 est.)
-$544 million (2016 est.)
country comparison to the world: 103
[see also: Current account balance country ranks ]

Exports:
$16.7 million (2017 est.)
$18 million (2015 est.)
country comparison to the world: 214
[see also: Exports country ranks ]

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

Imports:
$681.2 million (2017 est.)
$558.6 million (2016 est.)
country comparison to the world: 192
[see also: Imports country ranks ]

Imports - commodities:
food, gasoline, kerosene, machinery

Reserves of foreign exchange and gold:
$544.4 million (31 December 2017 est.)
$437.8 million (31 December 2015 est.)
note: excludes assets of approximately $9.7 billion in the Petroleum Fund (31 December 2010)
country comparison to the world: 150
[see also: Reserves of foreign exchange and gold country ranks ]

Debt - external:
$311.5 million (31 December 2014 est.)
$687 million (31 December 2013 est.)
country comparison to the world: 184
[see also: Debt - external country ranks ]

Stock of direct foreign investment - at home:
(31 December 2009 est.)
[see also: Stock of direct foreign investment - at home country ranks ]

Exchange rates:

the US dollar is used