Timorese government forecasts economic growth of 4.3% in 2026 and 4.6% in 2027

The Timor-Leste government forecasts an economic growth of 4.3% in 2026 and 4.6% in 2027, driven by public and private investment, infrastructure improvements, and financial sector development. The average growth is expected to reach 4.7% by 2031. Key reforms include property title acceleration, tax administration improvements, and the establishment of a National Development Bank. Infrastructure projects like fiber optic cables and airport renovations will support growth. Inflation is projected to remain low, averaging 1.6% annually from 2026 to 2031. The proposed state budget for 2027 totals $2.568 billion, focusing on resilience and economic diversification.