TIMOR LESTE

Country risk rating

D4

HIGH RISK for enterprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

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GDP USD2.58bn (World ranking 175, World Bank 2018)
Population 1.27mn (World ranking 155, World Bank 2018)
Form of state Republic
Head of government Taur Matan RUAK (Prime Minister)
Next elections 2022, presidential
  • Stable security situation and democracy, with orderly transfers of power
  • Low-tax regime, welcoming foreign direct investments
  • Important natural gas resources, including a new offshore gas field (Greater Sunrise) in which private companies and the government are investing
  • Tourism with protected natural areas
  • One of the poorest countries in Asia, with a small population and a lack of skilled labor
  • Government instability
  • Worrisome dependency on the Bayu-Undan gas field (accounting for 80% of the country’s budget) that is expected to run dry by 2022
  • Lack of infrastructure, which is a constraint for long-term projects and growth
  • Weak business environment, including legal uncertainty and high level of perceived corruption

Contact

Contact Euler Hermes

Economic Research Team

research@eulerhermes.com

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