Viseu, Portugal – Economic difficulties in the world's newest nation, East Timor, are a potential source of violence, President Xanana Gusmao has warned.

"Difficulties and discomfort" are faced by many Timorese, due to sluggish economic growth, and the country's young people are disillusioned due to high unemployment, Gusmao told reporters Tuesday on the margins of a conference on the Portuguese language.

"We are aware of all this, but we cannot impose stability only through law.

We have to do it through more participation of sections of society that could resort to violence".

Gusmao, who began a week-long visit to Portugal on Monday, downplayed the threat of outbreaks of violence in his country, noting the phenomenon was universal.