Brunei’s non-oil and gas sector has recorded an increase of 1 percent growth, meanwhile, the oil and gas sector decreased by 9 percent in the first quarter (Q1) of 2022.
Department of Economic Planning and Statistics, in a statement, said that the decline of the oil and gas sector has resulted in the negative growth of the country’s Gross Domestic Product (GDP) in Q1 2022 by 4.2 percent compared to the previous year.
The sultanate’s GDP at current prices in Q1 2022 was valued at $5 billion compared to $4.2 billion in Q1 2021.
The oil and gas sector, comprising oil gas mining and the manufacture of Liquefied Natural Gas (LNG), accounted for 51.5 percent of the total gross value added (GVA).
Meanwhile, the non-oil and gas sector, which includes downstream activities such as the manufacture of petroleum and chemical products, contributed 48.5 percent of GDP.
The decline in the oil and gas sector was due to a decrease in the production of crude oil from 114.9 thousand barrels per day in Q1 2021 to 101.6 thousand barrels per day in Q1 2022.
Natural gas production also recorded a decrease from 32.6 million cubic metres per day in Q1 2021 to 29.8 million cubic metres per day in Q1 2022.
The reduction in crude oil and natural gas production was due to maintenance and rejuvenation activities.
Correspondingly, LNG production declined from 891,347 MMBtu per day to 732,357 MMBtu per day during the same period with decreased in gas production.
However, the non-oil and gas sector remained positive as downstream activities picked up with increased production of petroleum products including Diesel and RON92, as well as the new production of chemical products specifically urea fertiliser.
The Wholesale & Retail Trade subsector continued to show growth, primarily driven by an increase in wholesale activities including medical equipment items, food and beverages.
This encouraging performance was supported by an increase in domestic demand, backed in part by the relaxation of domestic and border restrictions.
The growth in the transport subsector was primarily driven by the expansion of water transport and air transport.
The rise in air transport activities during Q1 2022 was in line with an increase in the number of arrivals and departures of air passengers as entry and exit from the country have been permitted according to the travel guideline issued by the Prime Minister’s Office.
The easing of COVID-19 preventive measures and border restrictions has led to an increase in travel activities, hence contributing to the growth of the hotel sector in Q1 2022.
In addition, the Agriculture, Forestry & Fishery Sector has also continued to show encouraging performance.
In Q1 2022, this sector has increased by 0.8 percent due to fishery, agriculture and forestry production activities.
An increase in the Fishery Subsector was mainly due to the rise in the capture industry for the small-scale fisherman activities.
Meanwhile, the rise in the Agriculture Subsector was attributed to the growth in paddy, vegetable, and fruit production.
Meanwhile, an increase in the production of round and sawn timber was the most significant contributor to the expansion of the forestry sector.
By expenditure approach, a decline in GDP growth in Q1 2022 was mainly due to a decrease in the Net Export by 28.0 percent year-on-year.
This was followed by a reduction in the Gross Capital Formation, primarily the private investment in machinery and equipment. However, this growth was moderated by an increase in the Government Final Consumption Expenditure and the Household Final Consumption Expenditure by 3.8 percent and 5.5 percent, respectively.
GDP is a measure of the total value of goods and services produced in a particular period after deducting the cost of goods and services used up in the process of production.
The GDP full report for the First Quarter of 2022 is available from DEPS’s website: https://deps.mofe.gov.bn
THE BRUNEIAN | BANDAR SERI BEGAWAN