Paulina Quintao – Timor-Leste's 2014 non-petroleum sector derived economic growth is projected to hit 8 per cent, according to government estimates.

Economist Hans Anand Beck said the gross domestic product would fall this year due to the sluggish private sector.

He said it was difficult to contrast this year's projected results with the previous year's as the government is yet to announce 2013 economic figures. However he said Timor-Leste had performed favourably in comparison with its neighbours in Asia.

He said growth of the private sector – in particular the coffee, drinking water and food industries – was integral to reducing Timor-Leste's reliance on imports to stimulate further economic growth and enable the nation to develop quicker.

Beck said the private sector growth needed to be considered in relation to government infrastructure spending. While the private sector does not add directly to government expenditure, private ventures can fail if the government does not allocate adequate funds to the upgrade of public facilities such as roads and ports.

Member of Parliament Inacio Moreira said the government had failed to sufficiently stimulate the economy as the projected growth figure of 8 per cent was well short of previous growth targets of 12 per cent.

He said too much of investment was focused on foreign companies which did not re-invest profits in Timor-Leste.

Moreira said rising inflation meant pricing of basic goods was out-of-step with wages earned by the average Timorese worker. He urged the government to investigate the cause of Timor-Leste's slowing economy.

Source: http://www.thediliweekly.com/en/news/news/12740-sluggish-private-sector-brings-down-growth