Sandle wood for flooring
Prior to and during colonisation , East Timor was best known for sandle wood. In late 1999,about 70 % of the economic infrastructure of East timor was destroyed by Indonesian troops and anti-independence militias, and 260,000 people fled westward. From 2002 to 2005, an international programm led by the UN, manned by civilian advisers, 5,000 peacekeepers and 1,300 police offficers, substantially reconstructed the infrastructure. By mid-2002, all but about 50,000 of the refugees had returned.
East Timor showed the world's second best economic growth in 2008, and projections for the next two years were also above expected figures, said Timorese Govt. spokesman. Agio Pereira, secretary of state of the council of ministers said that East Timorhad shown economic growth of 12.8 p.c. in 2008 despite the world wide recession. This value represents increase of 44 p.c. in the number of tax payers, 46 p.c in direct taxation and 56 p.c. in fees related to business activity in East Timor.
Data from the UN development programm (UNDP) indicate that around 90 p.c. work force is invoved in agriculture, a sector which continues to be marked by seasonal conditions unreliability and subsistence farming
In the wake of the Asian crisis, East Timor's out put declined, although by less than the average for Indonesia, inflation and interest rate rose and monetory velocity and credit disintermediation increased.