More oil backs Brunei’s economy

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Brunei Shell gas stationBrunei’s economy grew 3.6 per cent in the first quarter of 2016 year-on-year as the Sultanate managed to increase its oil and gas production by 7.6 per cent in value, statistics released by Brunei’s Department of Economic Planning and Development show. A recovery in oil prices since February also helped.

GDP at constant prices increased to 4.69 billion Brunei dollars ($3.47 billion) in the period, up from 4.53 billion Brunei dollars in the same period last year.

On the downside, despite the country’s efforts to reduce its dependence oil hydrocarbons and push economic diversification, all other major sectors of the country’s economy shrank.

The services sector, which accounted for 42.1 per cent of the country’s GDP in the first quarter, contracted by 0.7 per cent, mainly on a decline in transport services.

The agriculture, forestry and fishery sector declined by 15.1 per cent owing to lower fishery, fruits and vegetables production, while the non-oil and gas industry sector shrank by 1.9 per cent due to a slowdown in the construction industry.

Brunei_Exports_Treemap
Brunei’s export treemap shows how dominant the oil and gas sector is for the country

Government spending decreased by 11.4 per cent. Gross investment and exports declined by 8.4 per cent and 3.8 per cent respectively, while imports of goods and services expanded 14.2 per cent.

The forecast for the full year remains subdued, at least according to the International Monetary Fund (IMF) which expects Brunei’s economy to contract by two per cent this year, continuing a downward trend that started in 2013.

But the IMF believes that the country’s economy will rebound in 2017, with GDP seen to expand by three per cent as per the fund’s forecast released in May this year.

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Brunei's economy grew 3.6 per cent in the first quarter of 2016 year-on-year as the Sultanate managed to increase its oil and gas production by 7.6 per cent in value, statistics released by Brunei's Department of Economic Planning and Development show. A recovery in oil prices since February also helped. GDP at constant prices increased to 4.69 billion Brunei dollars ($3.47 billion) in the period, up from 4.53 billion Brunei dollars in the same period last year. On the downside, despite the country's efforts to reduce its dependence oil hydrocarbons and push economic diversification, all other major sectors of the...

Reading Time: 1 minute

Brunei Shell gas stationBrunei’s economy grew 3.6 per cent in the first quarter of 2016 year-on-year as the Sultanate managed to increase its oil and gas production by 7.6 per cent in value, statistics released by Brunei’s Department of Economic Planning and Development show. A recovery in oil prices since February also helped.

GDP at constant prices increased to 4.69 billion Brunei dollars ($3.47 billion) in the period, up from 4.53 billion Brunei dollars in the same period last year.

On the downside, despite the country’s efforts to reduce its dependence oil hydrocarbons and push economic diversification, all other major sectors of the country’s economy shrank.

The services sector, which accounted for 42.1 per cent of the country’s GDP in the first quarter, contracted by 0.7 per cent, mainly on a decline in transport services.

The agriculture, forestry and fishery sector declined by 15.1 per cent owing to lower fishery, fruits and vegetables production, while the non-oil and gas industry sector shrank by 1.9 per cent due to a slowdown in the construction industry.

Brunei_Exports_Treemap
Brunei’s export treemap shows how dominant the oil and gas sector is for the country

Government spending decreased by 11.4 per cent. Gross investment and exports declined by 8.4 per cent and 3.8 per cent respectively, while imports of goods and services expanded 14.2 per cent.

The forecast for the full year remains subdued, at least according to the International Monetary Fund (IMF) which expects Brunei’s economy to contract by two per cent this year, continuing a downward trend that started in 2013.

But the IMF believes that the country’s economy will rebound in 2017, with GDP seen to expand by three per cent as per the fund’s forecast released in May this year.

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