Increased public and private investment should lead to the growth of the Timor-Leste (East Timor) economy increasing to 4.5 percent in 2016 and 5.5 percent in 2017, the Asian Development Bank (ADB) said in a recent report.
The Asian Development Outlook 2016 report said that the public-private partnership to build a new seaport west of the capital Dili is expected to begin in 2017 requiring an investment of US$290 million, 19.8 percent of the country’s Gross Domestic Product (GDP) in 2015.
Writing that the private sector should be responsible for more than half of this cost, the report said that the Timorese government is planning major investments in other infrastructure projects, in addition to private investment in cement production and tourism.
Price rises in Timor-Leste are expected to remain moderate over the next two years, and the inflation rate should be around 2 percent in 2016 and increase to 3 percent next year due to the combined effects of lower oil prices and the stronger dollar.
Timor-Leste, since it became a member of the ADB in 2002, has already received six financial packages from the Trust Fund for Timor-Leste (US$52.8 million), five from the Asian Development Fund (US$85 million) and 41 technical assistance projects (US$35.82 million). (macauhub/TL)