Brunei’s non-oil and gas sector has recorded an increase of 4.6 percent growth, meanwhile, the oil and gas sector decreased by 2.7 percent in the third quarter (Q3) of 2022.
Department of Economic Planning and Statistics, in a statement, said that the non-oil and gas sector which includes downstream activities such as the manufacture of petroleum and chemical products, contributed 48.3 percent of GDP.
The Oil & Gas Sector which comprises oil & gas mining and the manufacture of Liquefied Natural Gas (LNG), accounted for 51.7 percent of the total gross value added (GVA).
“GDP by economic activity was mainly contributed by the Industry sector which was about 66.4 percent. This was followed by Services sector by 32.5 percent and Agriculture, Forestry and Fishery sector by 1.1 per cent.,” said the department.
The sultanate’s GDP at current prices in Q3 2022 was valued at $5.8 billion compared to $4.7 billion in Q3 2021.
The Non-Oil & Gas Sector remained positive with an increase in the Subsectors such as Downstream, Finance, Air Transport, Wholesale and Retail Trade, and Fishery.
An increase in the Downstream activities was due to increased methanol production by 16.1 percent, from 129,778 metric tons in Q3 2021 to 150,674 metric tons in Q3 2022 as well as the new production of the chemical product, specifically urea fertiliser.
Meanwhile, the increase in the Finance Subsector was in line with an increase in the income from financial and banking activities.
The increase in Transport Subsector was mainly contributed by the rise in Air Transport. The increase in Air Transport activity was in line with the increase in passenger air arrivals, from 4,494 in Q3 2021 to 79,730 in Q3 2022; and air departures, from 8,140 in Q3 2021 to 71,595 in Q3 2022, which corresponded to permission to enter and exit the country.
The increase in the Wholesale and Retail Trade Subsector was due to the rise in domestic demand in line with the reduction in control measures following the cessation of the COVID-19 Early Endemic Phase as opposed to the third quarter (Q3) in the previous year, in which most movement restrictions were reinstated to control the spread of COVID-19.
The increase in this Subsector was also in line with the rise in retail sales mainly driven by an increase in sales of Textiles, Wearing Apparel and Footwear, sales of Hardware, Paints and Glass in specialised stores and sales at Petrol Station.
Furthermore, the increase in the Fisheries Subsector resulted from the expansion of the capture and aquaculture industries. The growth of the capture industry was primarily attributable to small-scale fishermen’s activities. Meanwhile, farm prawn was the main contributor to the aquaculture industry.
“However, the decline in the Oil & Gas Sector was due to a decrease in the production of crude oil from 97.1 thousand barrels per day in Q3 2021 to 86.2 thousand barrels per day in Q3 2022,” the department.
Natural gas production also recorded a decrease from 28.7 million cubic metres per day in Q3 2021 to 28.0 million cubic metres per day in Q3 2022.
The reduction in crude oil and natural gas production was due to schedule and unscheduled maintenance and rejuvenation activities for the offshore platform. This has limited the natural gas supply to the LNG plant and caused low gas intake for the purpose of Liquefied Natural Gas (LNG) production.
In addition, maintenance activities were also carried out at the LNG plant, thus, LNG production has declined from 750,944 MMBtu per day in Q3 2021 to 731,975 MMBtu per day in Q3 2022.
By expenditure approach, an increase in GDP growth in Q3 2022 was due to a rise in the Exports of Goods and Services by 14.3 percent, mainly the export of mineral fuel goods. This was followed by an increase in the Household Final Consumption Expenditure (12.2 percent), Private Gross Capital Formation (2.4 percent), and Government Final Consumption Expenditure (0.4 percent).
Gross domestic product (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 Third Quarter of 2022 is available from DEPS’s website at deps.mofe.gov.bn
THE BRUNEIAN | BANDAR SERI BEGAWAN