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East Timor will struggle to improve economic outlook

Monday, November 1, 2021


The country is trying to rebuild its economy, which contracted by an estimated 7.6% in 2020. The fallout of the COVID-19 crisis has cut oil and gas income, which contributes about 90% of revenue, and crops were devastated by a cyclone earlier this year.


  • Political instability and poor governance will undermine state planning.
  • Foreign investors will be deterred by inadequate infrastructure and the low skills base.
  • Strains with Australia over an espionage controversy will mar the main development partnership.
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