Economy
GDP (2005 est.): $335 million.
GDP per capita (nominal): $354.
GDP composition by sector: Services 54%, agriculture 32%, industry 15%.
Industry: Types--coffee, oil and natural gas.
Trade: Exports--coffee, oil and natural gas. Major markets--Australia, Europe, Japan, United States. Imports--basic manufactures, commodities. Major sources--Australia, Europe, Indonesia, Japan, United States.

EAST TIMOR ECONOMY
As the poorest nation in Asia, East Timor must overcome formidable challenges. Basic income, health, and literacy indicators are among the lowest in Asia. Severe shortages of trained and competent personnel to staff newly established executive, legislative, and judicial institutions hinder progress. Rural areas, lacking in infrastructure and resources, remain brutally poor, and the relatively few urban areas cannot provide adequate jobs for the country’s growing labor force. Many cities, including the country’s second largest, Baucau, do not have routine electrical service. Rural families' access to electricity and clean water is very limited. Unemployment and underemployment combined are estimated to be as high as 70%. While revenues from offshore oil and gas reserves offer great hope for the country, effective use of those resources will require a major transformation of the country's current human and institutional infrastructure. Meanwhile, as those substantial revenues come on line, foreign assistance levels--now standing at among the highest worldwide on a per capita basis--will likely taper off.

East Timor has made significant progress in a number of areas since independence. It has become a full-fledged member of the international community, joining the United Nations, the International Monetary Fund, the World Bank, and the Asian Development Bank (ADB). The Government of East Timor has drafted a National Development Plan, and its Constituent Assembly has transitioned into a National Parliament that has commenced reviewing and passing legislation. In July 2005, Parliament unanimously passed a law creating a petroleum fund to effectively manage and invest oil revenues to ensure these funds are invested in the country’s development after exploitation of these resources ends. While a nascent legal system has been put into place, the justice system remains among the weakest performing sector of government, still unable to perform its most basic functions without substantial assistance by outside professionals. Efforts are underway to put in place the institutions required to protect human rights, rebuild the economy, create employment opportunities, and reestablish essential public services.