Brunei’s non-oil and gas sector has recorded an increase of 3.1 percent growth, contributing 47.3 per cent to the total economy. Meanwhile, the oil and gas sector decreased by 6.2 percent in the fourth quarter (Q4) 2022.
Department of Economic Planning and Statistics, in a statement, said that the non-oil and gas sector was driven by the rise in subsectors such as Manufacturing of Petroleum and Chemical Products, Wholesale and Retail Trade, and Air Transport.
The decline in the Oil and Gas Sector has caused the country’s economy to grow at a negative rate by 1.6 per cent, attributed to the Oil and Gas Mining, and the Manufacturing of Liquefied Natural Gas (LNG) Subsectors.
“GDP by economic activity was mainly contributed by the Industry sector which was about 64.2 percent. This was followed by the Services sector at 34.7 per cent and Agriculture, Forestry, and Fishery sector at 1.1 per cent,” said the department.
The sultanate’s GDP at current prices in Q4 2022 was valued at $5.7 billion compared to $5.2 billion in Q4 2021.
The Oil & Gas Sector accounted for 50.7 per cent, meanwhile, the Non-Oil & Gas Sector, which includes downstream activities such as the manufacture of petroleum and chemical products, contributed 49.3 per cent.
Meanwhile, GDP growth in Q4 2022, at constant prices, recorded a decline of 1.6 per cent year-on-year. This was due to a decrease in the Oil & Gas Sector of 7.5 per cent. On the other hand, the Non-Oil & Gas Sector increased by 4.3 per cent.
The decline in the Oil & Gas Sector was due to a decrease in the production of crude oil, natural gas and LNG, as a result of maintenance and rejuvenation activities.
The Non-Oil & Gas Sector remained positive with an increase in the subsectors attributed to Manufacturing of Petroleum and Chemical Products, Wholesale and Retail Trade, and Finance.
An increase in the Manufacturing of Petroleum and Chemical Products Subsector by 14.2 per cent was due to an increase in the production of petroleum particularly RON 90, and also the production of new chemical product, specifically urea fertiliser.
The increase in the Wholesale and Retail Trade Subsector by 9.0 per cent was due to the rise in domestic demand particularly improved retail sales performance following the lifting of pandemic restrictions. Meanwhile, the increase in the Finance Subsector was in line with an increase in the income from financial and banking activities.
By expenditure approach, a decrease in GDP growth in Q4 2022 was due to a decrease in the Gross Capital Formation particularly private investment by 0.9 per cent, and Government Final Consumption Expenditure by 1.0 per cent.
However, the decrease was moderated by an increase in the Exports of Goods and Services by 8.4 per cent, mainly the export of mineral fuel goods and Household Final Consumption Expenditure by 18.1 per cent.
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 full report for the GDP Fourth Quarter and Annual 2022 is available from DEPS’s website at deps.mofe.gov.bn
THE BRUNEIAN | BANDAR SERI BEGAWAN