🇹🇱 Cost of Living: East Timor vs Papua New Guinea — Price Comparison
Last updated: February 2026
Verified Facts
Official NameDemocratic Republic of Timor-Leste
CapitalDili
Population1.4 million
Area14,874 km² (5,743 sq mi)
LanguagesPortuguese, Tetum
CurrencyUnited States dollar ($)
TimezoneUTC+09:00
RegionAsia / South-Eastern Asia
Drives onLeft
Source: REST Countries API
Economic Indicators
GDP per Capita (PPP)$4,423 (2024)
Inflation Rate2.1% (2024)
Health Spend per Capita$144 (2023)
Out-of-Pocket Health Spend7.0% (2023)
Education Spend (% GDP)5.2% (2023)
Source: World Bank Open Data
East Timor is generally cheaper than Papua New Guinea, with an overall cost of living that is around 20-30% lower.
Quick Facts
East Timor GDP per Capita (PPP)4,300
Papua New Guinea GDP per Capita (PPP)3,800
East Timor Inflation Rate2.5%
Papua New Guinea Inflation Rate4.5%
Overall Winner (Cheaper)East Timor
Overview: East Timor vs Papua New Guinea
East Timor and Papua New Guinea are two neighboring countries in the Asia-Pacific region, with distinct economic profiles. East Timor has a relatively stable economy, driven by its oil and gas sector, while Papua New Guinea's economy is more diversified, with a strong mining sector. In terms of cost of living, East Timor is generally cheaper than Papua New Guinea, with lower prices for housing, food, and transportation. The overall cost of living in East Timor is around 20-30% lower than in Papua New Guinea, making it an attractive option for expats, students, and retirees.
The economic context of the two countries also plays a significant role in determining their cost of living. East Timor has a smaller economy, with a GDP per capita of around $4,300, compared to Papua New Guinea's $3,800. However, East Timor's economy has been growing steadily, driven by its oil and gas sector, while Papua New Guinea's economy has been more volatile, with fluctuations in global commodity prices. As a result, East Timor has been able to maintain a relatively stable cost of living, while Papua New Guinea has experienced higher inflation rates, averaging around 4.5% per annum.
Rent & Housing Comparison
Item
East Timor (USD)
Papua New Guinea (USD)
Difference
1BR Apartment (City Center)
400
600
33% cheaper
1BR Apartment (Outside)
250
400
37% cheaper
3BR Apartment (City Center)
800
1,200
33% cheaper
Food & Dining Comparison
Item
East Timor (USD)
Papua New Guinea (USD)
Difference
Meal at Restaurant
10
15
33% cheaper
Groceries (monthly)
300
450
33% cheaper
Beer (500ml)
2
3
33% cheaper
Coffee
1
2
50% cheaper
Transport Comparison
Item
East Timor (USD)
Papua New Guinea (USD)
Difference
Monthly Transit Pass
20
30
33% cheaper
Taxi (per km)
0.50
1.00
50% cheaper
Fuel (per liter)
0.80
1.20
33% cheaper
Utilities & Internet Comparison
Item
East Timor (USD)
Papua New Guinea (USD)
Difference
Utilities (85 sqm apt)
100
150
33% cheaper
Internet (60 Mbps)
30
50
40% cheaper
Mobile Plan
10
20
50% cheaper
Monthly Budget Comparison
Budget Tier
East Timor (USD)
Papua New Guinea (USD)
Savings
Budget
800
1,200
33%
Mid-Range
1,200
1,800
33%
Comfortable
2,000
3,000
33%
Where Each Country Wins
East Timor is cheaper for:
Rent and housing, with prices around 30-40% lower than in Papua New Guinea
Food and dining, with meals and groceries around 30-50% cheaper
Transportation, with taxi fares and fuel prices around 30-50% lower
Utilities and internet, with prices around 30-50% cheaper
Papua New Guinea is cheaper for:
Some imported goods, which may be cheaper due to Papua New Guinea's more developed trade networks
Certain types of accommodation, such as guesthouses and hostels, which may be more readily available in Papua New Guinea
Tourist activities, such as diving and trekking, which may be more developed in Papua New Guinea
Certain types of food, such as fresh seafood, which may be more abundant in Papua New Guinea
Bottom Line
East Timor offers better value for expats, students, and retirees who are looking for a low-cost lifestyle. With its relatively stable economy and low cost of living, East Timor provides an attractive option for those who want to live comfortably without breaking the bank. However, Papua New Guinea may be more suitable for those who are looking for a more developed tourist infrastructure and a wider range of activities and amenities. Ultimately, the choice between East Timor and Papua New Guinea will depend on individual preferences and priorities. For those who value a low-cost lifestyle and a laid-back atmosphere, East Timor may be the better choice. But for those who are looking for a more vibrant and developed expat community, Papua New Guinea may be worth considering.