Timor-Leste: CPIA financial sector rating (1=low to 6=high)

Key figures

What the numbers say

In 2025, Timor-Leste's CPIA financial sector rating (1=low to 6=high) fell 0.5 on 2024 (from 3 to 2.5).

Across the 18 yearly changes before that (2007 to 2024), the average change was +0.03 and a typical year strayed about 0.12 from that (the standard deviation). This year's change was 4.5 standard deviations below that average, so it was unusually large compared with the rest of the record.

On record, the biggest yearly rise was 0.5 in 2024 and the biggest yearly fall was 0.5 in 2025. The numbers show how large and when, not why; for the cause, look at what happened in that country in those years.

From 2016 to 2025 there is no clear straight-line trend: a straight line explains 16% of the movement over 10 observed years, so the value is moving around more than it is heading anywhere.

Worked out from the yearly values above. How the checks work: standard deviation, z-scores and straight-line trends.

How it compares

In 2025, Timor-Leste had the 45th highest value of the 72 economies reporting that year. Higher is not always better: for some indicators the lowest value is the one to aim for. See the full ranking.

Closest to Timor-Leste in the 2025 ranking

• São Tomé and Principe — 54th of 72: 2.5
• Sierra Leone — 55th of 72: 2.5
• Tajikistan — 56th of 72: 2.5
• Bangladesh — 58th of 72: 2
• Guinea-Bissau — 59th of 72: 2
• Haiti — 60th of 72: 2

What this measures

The CPIA measures the extent to which a country’s policy and institutional framework supports sustainable growth and poverty reduction, and consequently the effective use of development assistance. The outcome of the exercise yields both an overall score and scores for sixteen criteria that compose the CPIA. These criteria include: A. Economic Management (1. Monetary and Exchange Rate Policies; 2. Fiscal Policy; 3. Debt Policy and Management), B. Structural Policies (4. Trade; 5. Financial Sector; 6. Business Regulatory Environment), C. Policies for Social Inclusion/Equity (7. Gender equality; 8. Equity of public resource use; 9. Building human resources; 10. Social protection and labor; 11. Policies and institutions for environmental sustainability), D. Public Sector Management and Institutions (12. Property rights and rule-based governance; 13. Quality of budgetary and financial management; 14. Efficiency of revenue mobilization; 15. Quality of public administration; 16. Transparency, accountability, and corruption in the public sector). The financial sector criterion assesses the policies and regulations that affect financial sector development. Three dimensions are covered: (a) financial stability; (b) the sector’s efficiency, depth, and resource mobilization strength; and (c) access to financial services.

Limitations: The CPIA exercise is intended to capture the quality of a country's policies and institutional arrangements, focusing on key elements that are within the country's control, rather than on outcomes (such as economic growth rates) that are influenced by events beyond the country's control. More specifically, the CPIA measures the extent to which a country's policy and institutional framework supports sustainable growth and poverty reduction and, consequently, the effective use of development assistance.

Regional and income-group figures are computed by the World Bank as a unweighted average.

All 20 values

CPIA financial sector rating (1=low to 6=high) in nearby economies

• Cambodia — 3 (2025)
• Kiribati — 2 (2025)
• Lao PDR — 2.5 (2025)
• Marshall Islands — 2 (2025)
• Micronesia, Fed. Sts. — 2.5 (2025)
• Mongolia — 2 (2019)
• Myanmar — 1.5 (2025)
• Papua New Guinea — 3 (2025)
• Samoa — 3.5 (2025)
• Solomon Islands — 3 (2025)

More public sector data for Timor-Leste

• Statistical performance indicators (SPI): Pillar 1 data use score (scale 0-100) — 80 (2024)
• Military expenditure (current USD) — 47.92 million (2025)
• Military expenditure (current LCU) — 47.92 million (2025)
• Military expenditure (% of GDP) — 2.25% (2025)
• Military expenditure (% of general government expenditure) — 2.38% (2025)
• CPIA business regulatory environment rating (1=low to 6=high) — 2.5 (2025)
• CPIA debt policy rating (1=low to 6=high) — 3.5 (2025)
• CPIA economic management cluster average (1=low to 6=high) — 2.83 (2025)
• CPIA policy and institutions for environmental sustainability rating (1=low to 6=high)

Reading data like this

• Where to find free public data, and how to check it before you trust it — 2 min read
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Questions people ask

What is Timor-Leste's CPIA financial sector rating (1=low to 6=high)?

2.5 in 2025, according to the World Bank (World Development Indicators).

How has it changed since 2006?

It is unchanged at from 2.5 in 2006. The highest value was 3 in 2024 and the lowest 2.5 in 2006.

How does Timor-Leste rank?

45th highest of 72 economies with data for 2025.

Is the latest change in CPIA financial sector rating (1=low to 6=high) unusual for Timor-Leste?

In 2025, Timor-Leste's CPIA financial sector rating (1=low to 6=high) fell 0.5 on 2024 (from 3 to 2.5). Across the 18 yearly changes before that (2007 to 2024), the average change was +0.03 and a typical year strayed about 0.12 from that (the standard deviation). This year's change was 4.5 standard deviations below that average, so it was unusually large compared with the rest of the record.

Source

World Bank, World Development Indicators, indicator IQ.CPA.FINS.XQ, licensed CC BY 4.0. Original source: CPIA database, World Bank Group (WBG), uri: http://www.worldbank.org/ida Figures are fetched from the World Bank API and refreshed monthly; see the series on data.worldbank.org. The full definition and method are in the World Bank's metadata glossary. Comparisons use the same World Bank release.

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