Democratic Republic of Timor-Leste: 2008 Article IV Consultation: Staff Report; Staff Statement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for the Democratic Republic of Timor-Leste
IMF Staff Country Reports, June 30, 2008
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- Democratic Republic of Timor-Leste: 2008 Article IV Consultation: Staff Report; Staff Statement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for the Democratic Republic of Timor-Leste
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Bibliographic details
- Published: June 30, 2008
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451837353.002
Macroeconomic and security assessment
- Timor–Leste’s initial efforts to develop a stable and healthy economy have been interrupted by the civil unrest of the past two years.
- The security situation remains fragile and an economic burden.
- Growth has rebounded in 2007, although the civil unrest continues to undermine the economy.
- Inflation has risen sharply, but remains low relative to regional comparators.
- Access to financial services remains limited and credit growth has stalled.
- Key challenge: manage the abundant petroleum revenue to alleviate near-term social problems and develop a sustainable non-oil economy.
Policy priorities and fiscal management
- Central policy focus: design and implement mechanisms to manage petroleum revenue effectively while supporting near-term social needs and longer-term non-oil growth.
- Public financial management and budget planning are highlighted subjects, indicating emphasis on cash spending and expenditure control.
- Fiscal policy implications: need to reconcile abundant oil revenue with sustainable non-oil fiscal stance and development priorities.
Financial sector and monetary issues
- Limited access to financial services and stalled credit growth constrain private sector development.
- Currency and money-related topics are identified as subjects, implying attention to monetary management amid inflationary pressures.
Key thematic subjects and keywords (as provided)
- Budget planning and preparation, Commodities, Currencies, Expenditure, Income, Money, National accounts, Oil, Public financial management (PFM).
- Keywords: Asia and Pacific, Budget planning and preparation, cash spending, CR, Currencies, ESF appropriation, fund staff estimate, Global, government, Income, ISCR, Oil, revenue estimate, staff appraisal, Timorese authorities.