Timor-Leste Economic Report, July 2023
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Washington, DC: World Bank
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Descripción
Timor-Leste’s economy continued its
recovery in 2022, expanding by 3.9 percent, fueled by public
consumption and investment. Private investment rose from an
exceptionally low level while net exports continued to be a
drag on growth. Headline inflation soared in March 2023 at
9.6 percent, spurred by significant increases in food and
non-food prices. High inflation is part of a global trend
driven by prices of tradable goods. Within Timor-Leste, the
government’s policy of enforcing higher excise taxes on
tobacco products, implementing import taxes, and applying
excises to sugar and sugary beverages, partially drove the
inflationary trend. To advance a reform agenda, the new
government may want to consider institutionalizing fiscal
consolidation through robust fiscal rules. Both revenue
mobilization and expenditure rationalization efforts should
not only be maintained but also enhanced. Given that
significant increases in public spending have had a limited
impact on Timor-Leste’s medium-term economic growth, it is
possible to sustain growth levels with a reduced budget.
Palabras clave
INFLATION, GOVERNMENT SPENDING, OIL PRODUCTION, AGRICULTURAL DEVELOPMENT