Timor-Leste’s economic freedom score is 43.2, making its economy the 170th freest in the 2014 Index. Its score has decreased by 0.5 point from last year, reflecting declines in trade freedom, labor freedom, and monetary freedom that outweigh improvements in investment freedom and freedom from corruption. Timor-Leste is ranked 40th out of 42 countries in the Asia–Pacific region, and its overall score is well below the world and regional averages. Since 2009, when Timor-Leste’s economic freedom was first assessed in the Index, its score has declined by over 7 points. Large score improvements in investment freedom and labor freedom have been offset by substantial declines in five other economic freedoms including a very large deterioration in the management of government spending. Public spending that is huge relative to non-oil GDP reflects the state’s outsized role in the economy. Economic freedom remains severely constrained in Timor-Leste. Since 2010, Timor-Leste has been mired in the ranks of the “repressed” economies. The economic base is narrow, and widespread corruption unchecked by a weak judicial system has been a considerable drag on economic activity.
Posted on: Wed, 01 Oct 2014 15:07:32 +0000
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