Economic Recovery Plan, August 2020.

The Economic Recovery Plan aims primarily to restore economic activity and growth in Timor‑Leste following the severe socio‑economic impacts of the COVID‑19 pandemic, while protecting people’s well‑being. The plan adopts a people‑centred approach, focusing on safeguarding employment, stabilizing household incomes, and supporting businesses to survive and resume operations. In the short term, the plan seeks to mitigate the crisis through direct support measures for families, workers (including the informal sector), and private enterprises, in order to sustain consumption levels and prevent further economic contraction. These interventions are designed to limit unemployment, income loss, and poverty, thereby maintaining basic living standards and social stability during the emergency phase. In the medium and long term, the plan goes beyond recovery and aims at economic transformation, addressing structural weaknesses of the national economy. Its key objectives include creating productive and decent jobs, strengthening human capital through investments in education, health, housing, and social protection, and restructuring the productive system to reduce dependence on oil revenues and imports. The strategy promotes diversification of key sectors (such as agriculture, tourism, and industry), enhancement of productivity, and greater resilience to future shocks. Overall, the plan seeks to build a more inclusive, sustainable, and diversified economy, where human development becomes the central pillar of economic policy and long‑term growth.