Timor-Leste’s economy grew by 4.1 percent in 2024, marking its fastest pace in years. While growth has continued into 2025, sustaining this momentum and ensuring long-term prosperity will require reforms to strengthen land governance, reduce dependence on Petroleum Fund withdrawals, broaden domestic revenues, and enhance the efficiency of public spending.
The September 2025 edition of the World Bank’s Timor-Leste Economic Report, titled Land of Opportunities: How Land Administration Can Power Timor-Leste’s Economic Transformation, examines the critical role of land governance in the country’s development. The analysis highlights that fragmented land administration continues to create systemic barriers to inclusive growth, even during periods of economic expansion. Although significant progress has been made in establishing the legal foundations for a modern land administration system, implementation challenges still constrain development. Lessons from countries like Rwanda and Indonesia demonstrate how systematic land reform can increase productivity and generate additional revenue.
David Freedman, World Bank Group Resident Representative for Timor-Leste, emphasized that land is one of the country’s most valuable assets. He noted that an efficient system for land titling and secure, inclusive land rights would stimulate private investment, drive growth, create jobs, and reduce poverty.
To unlock the country’s productivity and encourage investment, the report proposes a “7 Ps” roadmap—Policy, Protection, Planning, Past Data, People, Processes, and Platform. Implementing this framework would strengthen land rights, modernize land administration, and support sustainable economic growth.
The Timor-Leste Economic Report is the World Bank’s flagship biannual publication on the country’s economy, providing analysis of recent trends and policy options to help Timor-Leste transition toward resilience, economic diversification, and inclusive development.
