Timor-Leste profile

Demography and Health

Timor-Leste is a small, youthful nation with a population of about 1.40 million people in 2024. The birth rate is 22.1 births per 1,000 people (2023), while the crude death rate stands at 7.27 per 1,000 (2023), indicating natural population growth despite recent out-migration. Life expectancy at birth is 67.7 years (2023), reflecting ongoing health and development challenges relative to higher-income peers. The under-5 mortality rate is 50 deaths per 1,000 live births (2023), signaling substantial child health needs that likely require continued investment in maternal and child health services, immunization programs, and nutrition. Net migration in 2024 was negative (-2,552), suggesting more people leaving than entering, which can affect the country’s labor force, skills base, and demographic dynamics over time. Health financing and services show meaningful public investment, but coverage remains a work in progress. Current health expenditure accounts for 14.3% of GDP (2022), and domestic general government health expenditure per capita, PPP, is about 245 international dollars (2022), indicating a substantial public role in health but limited per-person resources by international standards. Nutrition remains a concern, with 15.9% of the population undernourished (2022). Connectivity and information flows are improving, yet still uneven: individuals using the Internet account for 34% of the population (2023), highlighting a digital divide that can affect health education, telemedicine, and service delivery. Environmental and health linkages are evident in several indicators. Greenhouse gas emissions per capita are relatively low at 1.45 t CO2e (2023), consistent with a small, developing economy with limited heavy industry. Water resources and stress indicators show medium exposure: level of water stress measured as freshwater withdrawal as a share of renewable resources is 28.3% (2021), signaling a need for prudent water management as demand grows. Taken together, these data portray a country with important health gains to sustain, significant nutrition and child-health gaps to close, and a potential for improved health outcomes through targeted investments in health systems, nutrition, maternal care, and digital health tools.

Economy, Trade and Investment

Timor-Leste’s economy is characterized by very high import dependence and a modest domestic production base. Exports of goods and services account for 22.9% of GDP in 2023, while imports of goods and services constitute 66.4% of GDP in the same year, underscoring a substantial reliance on trade to meet domestic demand and suggesting sensitivity to global price and supply shocks. GDP per capita in current US$ stands at about 1,343 in 2024, indicating a low income level for individuals, even as GDP per capita, PPP reaches 4,758 (2024), which implies that relative cost of living and price levels affect comparisons of welfare and purchasing power. Foreign direct investment, net inflows, reach 12.3% of GDP in 2024, signaling a relatively strong FDI share for a small economy and a potential engine for capital formation, technology transfer, and productivity gains. The current account balance is negative at -28.2% of GDP in 2024, reflecting a substantial import bill and possible volatility in energy revenues or commodity earnings, which can constrain macroeconomic stability and public spending capacity. Inflation is modest at 2.06% in 2024, suggesting price stability that supports household purchasing power and business planning, though it is essential to monitor for external price pressures. Military expenditure is 55.1 million USD in 2023, ranking 138 globally, indicating a small defense budget relative to the size of the economy. The unemployment rate is reported at 1.54% in 2022, though this figure may reflect measurement issues or a large informal sector; if accurate, it points to a tight labor market or data limitations rather than full employment, and underscores the need for better labor market data and inclusive growth policies. In sum, Timor-Leste’s economy shows promise from FDI and a growing PPP-adjusted income metric, but faces structural vulnerabilities from a high import bill, a broad current account deficit, and the external sector’s sensitivity to commodity prices. Policymaking that fosters diversification, domestic value-added, and resilience to external shocks will be key to translating FDIs into broad-based prosperity.

Governance and Institutions

On governance, Timor-Leste exhibits a mixed institutional picture with notable weaknesses alongside some positive stability. Political Stability and Absence of Violence/Terrorism scores are 0.26 (2023), with a rank of 86, indicating a modest degree of political calm relative to peers but not immune to risk. Regulatory Quality is -0.488 (rank 128), suggesting some difficulty in creating predictable, business-friendly regulations. Rule of Law is -0.834 (rank 156), highlighting challenges in judicial independence, contract enforcement, and predictable legal outcomes that can hamper private investment and service delivery. Control of Corruption is -0.227 (rank 97), indicating persistent corruption pressures that can distort resource allocation and erode citizen trust. Government Effectiveness is -0.842 (rank 156), pointing to weak public sector performance and policy implementation. These indicators collectively imply that while Timor-Leste benefits from political stability in a broad sense, institutional quality across regulatory, legal, and public administration dimensions remains an area requiring sustained reform. Strengthening anticorruption measures, improving judicial independence, enhancing regulatory quality, and boosting government effectiveness could unlock private investment, improve service delivery, and support a more predictable business and investment climate. Targeted governance reforms—combining institutional capacity-building, transparency, and accountability—would help translate macroeconomic gains (such as FDI inflows) into durable development outcomes for health, education, and infrastructure.

Infrastructure and Technology

Infrastructure and technology in Timor-Leste reflect a country at a pivotal stage of development. Internet penetration stands at 34% of the population in 2023, signaling meaningful digital access that can enable e-government, financial inclusion, and online health and education services, while also highlighting a significant portion of the population without online connectivity. Energy infrastructure shows renewable energy contributing 11.4% of total final energy consumption (2022), implying heavy reliance on non-renewable or conventional energy sources and room for expansion of solar, hydro, or other renewables to improve energy security and reduce vulnerability to external shocks. The low per-capita carbon footprint (1.45 t CO2e) aligns with a smaller, less industrialized energy system, but it also points to potential gains from cleaner energy transitions as the economy grows. Water stress indicators (freshwater withdrawal as share of renewable resources) are moderate at 28.3% (2021), highlighting the importance of water management, irrigation efficiency, and climate-resilient infrastructure for agriculture and households. Overall, the technology and infrastructure picture shows a foundation for digital expansion and cleaner energy, paired with substantial needs in expanding internet coverage, electricity access, and resilient infrastructure to support diversified growth beyond extractives.

Environment and Sustainability

Environmental and sustainability indicators reveal a country balancing development with environmental stewardship. Water stress is moderate, with freshwater withdrawal at 28.3% of renewable resources (2021), underscoring the need for prudent water management as demand grows from population and economic activity. Total greenhouse gas emissions per capita exclude LULUCF at 1.45 t CO2e (2023), reflecting a low per-capita carbon footprint typical of small, less industrialized economies, yet absolute emissions will rise with development unless energy and efficiency improvements occur. Prevalence of undernourishment is 15.9% (2022), signaling ongoing food security concerns that intersect with climate risk, agricultural productivity, and poverty levels. Renewable energy consumption accounts for 11.4% of total final energy (2022), suggesting room to scale renewables to support sustainable growth and reduce import dependence on fossil fuels. The combination of a low-income context, health and nutrition challenges, and climate vulnerability means that environmental policies—such as expanding renewables, improving water and soil management, and building climate resilience—should be integrated with social protection and health initiatives to ensure inclusive progress. The small but growing reliance on external finance (FDI) and a negative current account balance further emphasizes the need for sustainable development strategies that align economic diversification with environmental stewardship.