Brunei’s non-oil and gas sector has recorded an increase of 4.3 percent while the oil and gas sector contracted 10.7 per cent in the second quarter (Q2) of 2023. Thus, the country’s GDP recorded a negative growth of 3.1 per cent.
The growth in the non-oil and gas was due to a rise in subsectors such as Air Transport (131.9 per cent) and Finance (79.9 per cent) followed by Other Manufacturing by 34.2 per cent.
The oil and gas sector’s decline, on the other hand, was caused by a decrease in the production of crude oil, natural gas and Liquefied Natural Gas (LNG), according to the Department of Economic Planning and Statistics in a statement.
The increase in the Air Transport Subsector was in line with an increase in passenger air arrivals and departures. Meanwhile, the positive performance of the Finance Subsector was in line with an increase in the income from banking activity. Whereas increase in the Other Manufacturing Subsector was contributed by the increase in cement production attributed to a rise in construction activities.
The Manufacture of Petroleum and Chemical Products Subsector under the Non-Oil and Gas Sector experienced a decline due to a decrease in the production of petrochemical products and urea fertilizer as a result of maintenance activities.
In terms of GDP contribution by economic activity, the Industry Sector contributed 62.7 per cent, followed by the Services Sector 35.9 per cent and the Agriculture, Forestry and Fishery Sector 1.4 per cent.
Brunei Darussalam’s GDP at current prices in Q2 2023 was valued at BND4.8 billion compared to BND6.4 billion in Q2 2022. The Oil and Gas Sector, comprising oil and gas mining and manufacture of Liquified Natural Gas (LNG), and the Non-Oil and Gas Sector, which includes downstream activities such as the manufacture of petroleum and chemical products, contributed at the same rate of 50.0 per cent of the total gross value added (GVA).
By expenditure approach, the decline in GDP growth in Q2 2023 was due to a decrease in the Exports of Goods and Services by 2.1 per cent particularly the export of mineral fuels. This was followed by a reduction in the Government Final Consumption Expenditure by 4.4 per cent.
However, the Household Final Consumption Expenditure and Gross Capital Formation recorded an increase of 16.3 per cent and 19.0 per cent respectively.
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 Q2 2023 is available from DEPS’s website at deps.mofe.gov.bn
THE BRUNEIAN | BANDAR SERI BEGAWAN
