DILI, 21 september 2023 (TATOLI)— The Asian Development Bank (ADB) has carried out a complete summary of economic growth or Gross Domestic Product (GDP) in Asia and the Pacific which states that Timor-Leste’s economy will grow at 2.9% in 2024.
A report published last Wednesday (21/09) explained that Timor-Leste’s economy would grow 2.9% in September 2024 compared to September 2023, which only reached 2.8% and 2.6% in 2022.
The revision for inflation in Timor-Leste fell sharply to 5.8% from 7% in September 2023 and according to the estimate, it will continue to fall to 2.8% in April 2024 and 3.3% in September of the same year.
ADB Chief Economist Albert Park said that developing countries in Asia continued to grow strongly, and inflationary pressures were starting to ease. However, the government must still be alert to the various risks facing the Asia and Pacific region.
The risks mentioned are that sporadic supply disruptions from Russia’s continued invasion of Ukraine, export restrictions, and the increased risk of drought and floods caused by El Niño could once again trigger rising food prices and challenge food security.
Economic growth in Timor-Leste is gaining momentum in 2022 with plans to increase government spending, following the re-emergence of the coronavirus disease (COVID-19) pandemic and major floods in 2021. Inflation pressures are high due to increases in global food and fuel prices.
ADB has supported Timor-Leste Timor-Leste since 1999 with a focus on removing infrastructure and institutional barriers to pave the way for more sustainable development. ADB’s expanded portfolio now supports the government’s efforts towards economic diversification.
To date, ADB has provided 79 public sector loans, grants, and technical assistance totaling US$751.5 million to Timor-Leste. Cumulative loan and grant disbursements to Timor-Leste totaled $269.28 million.
Meanwhile, the Ordinary and concessional capital resources are funded by the Asian Development Fund, ADB, and other special funds.
So far, ADB’s ongoing sovereign portfolio in Timor-Leste includes 14 loans and 1 grant worth $575.5 million.
Journalist: José Belarmino De Sá
Editor: Nelia B.