Demographic Profile and Human Capital
FEATUREDDEMOGRAPHICS
Timor-Leste's demographic profile presents both opportunities and challenges for businesses.
With an estimated population of approximately 1.4 million people as of mid-2025, the country has a young and growing population that represents a significant human capital resource. The population density of approximately 95 people per square kilometre indicates substantial room for economic expansion and development.
The ethnic composition is diverse, primarily consisting of Austronesian (Malayo-Polynesian) and Papuan groups, with small Chinese and Indonesian minorities. This diversity contributes to a rich cultural environment but also requires sensitivity to different community needs and preferences in business operations.
A significant portion of the population still resides in rural areas, though urbanisation is gradually increasing. This demographic distribution has implications for market development, infrastructure needs, and employment patterns. The young age structure of the population presents opportunities for businesses in education, technology, and consumer goods, while also highlighting the importance of job creation and skills development initiatives.